Yet another unprecedented move from the US central bank to shore up the fiat economy means that it is violating its own charter, critics warn.
Bitcoin (BTC) has only just completed its “hardening” — but fiat currency is already getting even “easier” as money after a historic move by the United States central bank.
As the Federal Reserve confirmed in a press release on May 11, the bank is about to finally launch its corporate debt exchange-traded fund (ETF) buying programs.
ETF buys to start imminently
Known as the Secondary Market Corporate Credit Facility (SMCCF) and Primary Market Corporate Credit Facility (PMCCF), the two vehicles will start work “in the near future.”
Announced in March as markets tumbled over coronavirus, the programs mean that the Fed, for the first time in its history, will buy ETFs to artificially maintain a semblance of normality in the market.
“More information on SMCCF and PMCCF eligible corporate bond purchases is forthcoming, including specific start dates, issuer certification requirements and more detailed instructions, more details on pricing, among other operational details,” the press release said.
The Department of the Treasury has made $37.5 billion of the $75 billion equity investment it will make in the special purpose vehicle established by the Federal Reserve for SMCCF and PMCCF.
Asset manager: Fed is “admitting it has failed”
The scale of the intervention saw pointed criticism almost as soon as it was unveiled.