g5000
Diamond Member
- Nov 26, 2011
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![www.marketwatch.com](https://s.marketwatch.com/public/resources/images/MW-GJ762_fed_fa_ZG_20180523143636.jpg)
The Fed is going to buy ETFs. What does it mean?
The central bank will use some new tools to help stabilize markets.
![www.marketwatch.com](https://mw4.wsj.net/mw5/content/images/favicons/apple-touch-icon.png)
The Federal Reserve on Monday announced a fresh round of stimulus designed to calm markets and buffer the hit to the economy from the coronavirus pandemic. Among other steps, the Fed said it would buy exchange-traded funds that track the corporate bond market, a first for the U.S. central bank.
“This will provide much-needed liquidity to the bond market and to ETFs,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA.
I don't know. This does not smell good at all.
The Fed has just become a day trader!