New Paper Rips Fed Asset Buying as a Stimulus Tool

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Federal Reserve asset buying aimed at supporting the financial system and economy during the coronavirus pandemic was largely a dud that exposed taxpayers to big losses, according to a paper that counts former Fed staffers as authors.

The research, made public Monday by the Hoover Institution, a conservative-leaning think tank at Stanford University, takes stock of the central bank’s very aggressive campaign of Treasury and mortgage-bond purchases that started in the spring of 2020. The purchases were first aimed at supporting…

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