4 ms·

Be precise. It seems like you think the Fed's failure is that they don't buy individual bonds. Why would the Fed prefer to buy individual bonds? The Fed buys i

• tripletao 6y ago
  I'm not sure what you mean? I think the Fed buying ETFs is fine, and that the Fed buying individual corporate bonds on the secondary market would be fine too but more complicated to administer without the appearance of political favoritism. So it makes sense to me that they're buying ETFs. whatok pointed out that the Fed didn't originally set out to buy mostly (or exclusively) ETFs, but rather to buy mostly individual bonds--it's just that the individual-bonds program turned out to be too complicated to actually use, so they ended up buying all ETFs. I thought that was a good clarification, and an interesting lesson on the complexity of modern finance (that even the creators of the program failed to predict how it would actually work). I'm not sure what to say to someone who hates the Fed for buying government debt, beyond that they've grossly misunderstood how a central bank works. I'd guess they also hate both the individual corporate bonds and the ETFs, so I'm not sure what your point is there?