The Federal Reserve’s dubious actions have thrust it into the spotlight once again, betraying the very principles it claims to uphold. A glaring violation stands out—its inexplicable foray into the realm of junk bonds. Why, one might ask, is an institution tasked with preserving economic integrity meddling in the murky waters of high-risk debt? This move raises serious questions about the Fed’s commitment to its mandate.
Is manipulating the price of junk debt part of the Federal Reserve’s mandate? The answer should unequivocally be “no.” The Federal Reserve’s primary responsibility is to ensure the stability and integrity of the financial system, not to engage in speculative ventures that could compromise its impartiality. The line between prudent financial management and overreach has been brazenly crossed.
The Federal Reserve, an entity entrusted with maintaining economic balance, has overstepped its bounds by delving into the purchase of company debt and ETFs. This is an affront to the very essence of its existence. The use of convoluted terminology to justify such actions is nothing short of an insult to the public’s intelligence. The Federal Reserve SHOULD NOT have the authority to venture into such risky territories.
NO BAILOUTS. These two words should resonate as a fundamental principle guiding the actions of the Federal Reserve. The recent dalliance with junk bonds and questionable investments raises concerns about the lack of clear restrictions on bailouts. The absence of stringent measures increases the risk of the Federal Reserve making decisions that could have far-reaching consequences, with taxpayers left to bear the brunt of any missteps.
A cursory look into the Federal Reserve’s holdings reveals a disconcerting pattern. Holdings of Treasury, agency, and mortgage-backed securities—these are within the purview of its responsibilities. However, the inclusion of commercial paper and other questionable assets paints a picture of an institution pushing the boundaries of its authority. The lack of lawful authority for certain purchases is alarming and requires immediate rectification.
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Notice the Federal Reserve list of holdings says treasuries and Mortgage Backed Securities?
So why the fuck were they buying JUNK BONDS.
Is manipulating the price of junk debt part of their mandate? t.co/bwjygcxiG4 pic.twitter.com/WU8DDelBwS
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) February 21, 2024
Oh, that's why pic.twitter.com/Y8ZNf9JykY
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) February 21, 2024