{"id":21877,"date":"2016-10-01T16:15:34","date_gmt":"2016-10-01T21:15:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21877"},"modified":"2016-10-01T16:15:34","modified_gmt":"2016-10-01T21:15:34","slug":"did-the-fed-really-say-they-could-buy-stocks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21877","title":{"rendered":"Did the Fed Really Say they Could Buy Stocks?"},"content":{"rendered":"
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Did the Fed Really Say they Could Buy Stocks?\u00a0<\/a><\/h3>\n<\/div>\n
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\"yellen<\/a><\/p>\n

The Fed told Congress it would buy stocks if Congress allowed it. This statement has caused a lot of people to scratch their heads. Will this cause all the stock bears to rethink their prognostications of a major stock market crash? This was not even on the radar of most people.<\/p>\n

Some have reported this story as \u201cthe first time in U.S. history\u201d that the Federal Reserve has openly spoken about purchasing of stocks rather than bonds and mortgage-backed securities. While this news may have been shocking to most, South Carolina Republican Mick Mulvaney asked\u00a0Janet Yellen before the House Financial Services Committee about the Fed\u2019s authority to buy stocks to stimulate the economy. Mulvaney asked:<\/p>\n

\u201cThere\u2019s been some attention in the last few months about the recent decision by the Bank of Japan to start purchasing equities and my question to you is fairly simple. Is the United States Federal Reserve looking at the possibility of adding the purchase of equities to its tool box as it looks at monetary policy?\u201d<\/em><\/p>\n

Yellen answered:<\/p>\n

\u201cWell, the Federal Reserve is not permitted to purchase equities. We can only purchase U.S. treasuries and agency securities. I did mention in a speech in Jackson Hole, though, where I discussed longer term issues and difficulties we could have in providing adequate monetary policy. Accommodation may be somewhere in the future, down the line that this is the kind of thing that Congress might consider, but if you were to do so, it\u2019s not something that the Federal Reserve is asking for.\u201d<\/em><\/p>\n

\"UB1798-Y-MA\"<\/p>\n

This response shook many on Wall Street. It is true that buying equities has been a part of Japan\u2019s effort to stimulate its economy. We will most likely see this tool attempted by Draghi on Europe since he has run out of things to do.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Did the Fed Really Say they Could Buy Stocks?\u00a0 The Fed told Congress it would buy stocks if Congress allowed it. This statement has caused a lot of people to scratch their heads. Will this cause all the stock bears to rethink their prognostications of a major stock market crash? This was not even on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,2014,303,451,5479,753,1796,3650,860],"class_list":["post-21877","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-banking-crisis","tag-fed","tag-janet-yellen","tag-martin-armstrong","tag-stocks","tag-us-congress","tag-us-federal-reserve","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21877"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21877\/revisions"}],"predecessor-version":[{"id":21878,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21877\/revisions\/21878"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}