That seems like it would be a terrible idea. The ability to create money up until the point of inflation seems like a key tool to manage economic disasters like COVID-19.

There’s no inflation when the fed buys corporate bonds or bails out failed corporations. It is just propping up the market.

If the fed had given that money directly to consumers we might have inflation problems. They’ll never do that. Socialism only exists in America for corporations.

The fed cannot give directly to consumers. However, congress can and did give directly to consumers with the 1200 check, the 600 a week increase in unemployment, and indirectly by funding payroll for small businesses and the airlines. However, that created a whole lot of debt which the fed has been predominantly buying with their printed dollars as you can see in their balance sheet [0].

[0]: https://www.federalreserve.gov/releases/h41/current/h41.htm

The fed is legally barred from directly lending to businesses or households except for in an emergency where they can do virtually anything they want.

Congress authorizes $300 billion in direct checks to consumers. The remaining $2.7 trillion went to businesses.

The fed has separately printed several trillion dollars lending to businesses, buying corporate bonds, and other actions.

What should the stock market be at right now? Who knows. We have no way to know because we won’t allow the market to tank.

> The remaining $2.7 trillion went to businesses.

Nope (and the total bill was 2.1 trillion not 3 trillion): https://en.wikipedia.org/wiki/Coronavirus_Aid,_Relief,_and_E...

> The fed has separately printed several trillion dollars lending to businesses, buying corporate bonds, and other actions.

Also not even remotely true, they are predominately buying U.S. Treasury securities and Mortgage-backed securities: https://www.federalreserve.gov/releases/h41/current/h41.htm

Got any sources to back up your claims?

When there's no worries about inflation, is there a downside to the fed doing this?

> There’s no inflation when the fed buys corporate bonds or bails out failed corporations. It is just propping up the market.

Respectfully, please read an economics textbook.

Trillions printed, inflation flat.

Please tell me more.

You're reasoning from a price change. Inflation is flat/decreasing only slightly because of the "printing", otherwise it would be sharply downwards.

The fed is engaging in aggressive monetary policy to prevent deflation.

The suggestion that buying corporate bonds (while holding everything else constant) is not inflationary is just not right. You can hold on to your mistaken beliefs, but just know that if you do so, it is in willing ignorance of the facts.

I'm not convinced the Fed has added enough liquidity to even offset deflation. There's a lot of GDP not happening in Q2.