Congressional Watchdog Asks If Fed Should Stop Bond Buying

  • U.S. taps just $6.7 billion of $500 billion rescue package
  • Oversight panel to meet with Fed, Treasury this month
Photographer: Andrew Harrer/Bloomberg
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Pandemic relief efforts by the Treasury and the Federal Reserve boosted the corporate bond market, but may be falling short in helping small business and state and local governments get access to loans, according to a report from a bipartisan congressional watchdog.

The Fed’s announcement in March that it would buy corporate bonds was enough to rally credit markets, with many large companies endangered by the pandemic finding enough cash in capital markets to cushion the blow.