Yellen Says Fed Buying Stocks Is “A Good Thing To Think About” And Could Help In A Downturn

Having hinted overnight that The Fed could buy stocks “maybe in the future,” Janet Yellen blurted out confirmation that buying assets other than long-term U. S. debt is on the table. Despite the total and utter failure of SNB and BOJ direct equity buying to create increased consumption, Yellen explained “it could be useful to be able to intervene directly in assets where the prices have a more direct link to spending decisions.”
Speaking via videoconference in response to questions raised at forum of Kansas City Fed minority bankers, Fed Chair Janet Yellen says there could be benefits to Fed buying equities or corporate bonds, yet would also likely be costs that have to be considered.

This post was published at Zero Hedge on Sep 29, 2016.