Analysts Speculate Fed Could Buy Equity ETFs to Support US Stock Market, With Potential Crypto Benefits
Analysts suggest the Federal Reserve may break precedent by buying equity ETFs to support the $75 trillion US stock market during a potential bear market correction, arguing the market is "too big to fail." The US equity market has grown 68% over five years and added ~$6 trillion in value this year, but experts like Peter Schiff warn of an impending major correction. Such Fed intervention could increase liquidity and have knock-on effects benefiting crypto markets. Bloomberg analyst Eric Balchunas is cited as a source for the Fed ETF-buying speculation.
Key quotes
The US equity market is 'too big and too important to fail'
The Fed may 'break decades of precedent' and buy equity ETFs to support the market
Years of rapid growth could be setting up the market for a major correction
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