There's a lot of misinformation going around on the internet, and one of the ones I keep seeing over and over is the idea that the Fed is buying stocks (which i

There's a lot of misinformation going around on the internet, and one of the ones I keep seeing over and over is the idea that the Fed is buying stocks (which it is not). The Fed's balance sheet only holds US treasuries, and a small amount of high quality corporate bonds. They are considering purchasing municipal bonds (i.e., local government debt) but I don't think that's happened yet. The Fed primarily provides liquidity, and it does that by purchasing bonds (aka debt) that nobody else wants to buy, but it's primarily US treasuries (i.e., US government debt). Yes this will lead to inflation (if you look at real numbers, not the shady official CPI numbers), but the USD is also the world's reserve currency, so the US will probably come out mostly unscathed as other countries look to horde USD.