Did the recent money-market bailout fall under the Fed's remit? Yes, the mechanism was different, but they were basically acting like the FDIC in that they were rescuing household savings.
In times of crisis, folks are going to argue any actions the Fed takes are within their remit [1] (accepting equity securities as collateral for short term cash through a primary dealer facility?). The vast majority of households do not use a money market fund; their savings are in FDIC deposit accounts or credit unions.
If you want government insurance, use a government insured account, or let’s do away with the idea that some types of assets will be allowed to fail; the Fed will simply step in and backstop the entire economy with “unlimited support”.
If you want government insurance, use a government insured account, or let’s do away with the idea that some types of assets will be allowed to fail; the Fed will simply step in and backstop the entire economy with “unlimited support”.
[1] https://www.federalreserve.gov/newsevents/pressreleases/mone...