Wednesday, January 20, 2021

Tag: Gundlach: Fed’s Corporate Bond Buying Program Is Illegal; Fed Says Program Isn’t Operational

Gundlach: Fed’s Corporate Bond Buying Program Is Illegal; Fed Says Program Isn’t Operational

by Pam Martens and Russ Martens, Wall St On Parade:

“The Fed has, effectively, become a hedge fund in drag as a central bank.”

When the Fed published its weekly H.4.1 data last Thursday, there was no mention of its two, highly controversial, corporate bond buying programs: the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF). We sent an email to the New York Fed to find out if the two programs are operational and if they will be consolidated on the Fed’s balance sheet. A spokesman for the New York Fed replied that “the PMCCF and SMCCF are not yet operational. And, as we note on the websites for each, additional information will be published before the facilities are launched.”