Guggenheim's Minerd Says Fed Is Stuck Financing U.S. Government

The video discusses the current state of stocks and the Federal Reserve's ongoing buying strategy. It highlights the Fed's interventionist role in financing the US Treasury due to large deficits. The discussion also covers credit spreads, noting that they have been wider 40% of the time compared to US Treasurys. The Fed's goals in tightening credit spreads are examined, with a focus on the corporate bond purchase program and the high demand for credit from investors.

What is the current stance of the Federal Reserve regarding market intervention?

• They are increasing their buying rate.

• They are selling off assets.

• They are continuing to buy at the same rate.

• They have stopped all interventions.

Why is the Federal Reserve considered interventionist according to the video?

• To control inflation rates.

• To provide enough credit to finance the US Treasury.

• To increase employment rates.

• To stabilize the stock market.

What is one of the main challenges the Fed faces in addressing economic problems?

• High inflation rates.

• Lack of public support.

• The size of the US government's deficits.

• Global economic instability.

What has the Fed not yet done under the corporate bond purchase program?

• Increased interest rates.

• Bought any corporate bonds.

• Reduced credit spreads.

• Sold government bonds.

What might drive credit spreads in, according to the video?

• A decrease in demand for credit.

• The Fed's support and corporate bond purchases.

• A reduction in government spending.

• An increase in interest rates.