Question

What is the rationale behind the Federal Reserve's most recent interventions in the stock market?

Amid investors' understandable concerns over COVID-19, the Federal Reserve has implemented a stimulus of sorts, "[extending] its purchases 'across a range of maturities' to include bills, notes, Treasury Inflation-Protected Securities and other instruments." It seems like the whole idea is to prevent panic selling and market collapse, but how exactly does this type of intervention increase investor confidence, given the ongoing situation?

Answer 1

The main rationale behind the Federal Reserve's most recent interventions in the stock market is to save th economy from a financial crisis.The Federal Reserve is trying to do purchasing in the stock market inorder to infuse liquidity into the U.S. market when the COVID-19 has tried to bring a downfall in the indices.

So the Federal Reserve has attempted a trillion dollar Resue Plan.

The Federal Reserve is trying to stimate the European Economy from a recession. It is on the process of increasing investor confidence.