- The Federal Reserve purchased $1.3 billion in corporate bonds in late June, on top of other purchases earlier in the month
- The purchases are part of an effort to keep interest rates low and allow large companies to borrow money by selling corporate debt
- The Fed has slowed such purchases in recent weeks and may stop altogether if the markets remain healthy
The Federal Reserve announced that it purchased $1.3 billion in corporate bonds in late June. Together with bond purchases made earlier in the year, the Fed has bought nearly $1.8 million in corporate debt.
The purchases are being made in an effort to prevent spikes in interest rates on corporate bonds, allowing large companies to continue borrowing money by selling debt. The Fed announced in March that it would be purchasing corporate debt for the first time ever.
Bond purchases have slowed down in recent weeks, and Fed officials say purchases may cease if the market remains healthy. The purchases have remained well below the $750 billion cap set by the Fed.
