Powell says the Fed doesn’t want to ‘run through the bond market like an elephant’


Federal Reserve Chairman Jerome Powell said the central bank’s announced move this week to buy corporate bonds fulfills a pledge it had made earlier but is not an effort to take over the market.

“It’s out of an excess of caution to preserve these gains for market function by following through,” Powell said Tuesday during his semiannual testimony before Congress. “I don’t see us wanting to run through the bond market like an elephant snuffing out price signals, things like that.”

In a move first telegraphed on March 23, the Fed said it will expand its purchase of corporate bonds

Read More