[DjMojoRisin]

The Fed announced these measures on March 23, and they are just now going to start buying these issues.

The Fed is trying to just "replace the wealth destruction that has happened". Keep in mind that even though the equity markets are back up close to pre covid levels, a lot of companies have had to take on Debt to weather the storm. This debt needs to be paid back with interest and in general can be a drag on company earnings.

The fed is also being somewhat judicious and buying shorter term securities (less than 5 years), so in essence they are only creating the money for the term of the bond they buy - they can choose to remove the money from the system when these bonds mature.

I also think that people are confusing the Fed trying to keep businesses solvent by providing short & medium term liquidity with them trying to raise equity prices.

Also the ECB & JCB have been doing this for the last several years with no inflation on the horizon there.

[nojs]

> The fed is also being somewhat judicious and buying shorter term securities (less than 5 years), so in essence they are only creating the money for the term of the bond they buy - they can choose to remove the money from the system when these bonds mature.

I don’t think the Fed has any plans to shrink its balance sheet in the near future or probably ever. And what happens when these BBB- bonds turn out to be junk and the companies default?

[DjMojoRisin]

If the bonds default, then the fed get's left holding the bag, and their balance-sheet shrinks by default :)