Fed May Buy Equity ETFs to Support Market Amid Political Pressure
2026-07-07 23:09

Woofun AI reports that Bloomberg ETF analyst Eric Balchunas released a report suggesting the Federal Reserve may purchase equity ETFs during future market downturns. Balchunas argues that with 55% of Americans owning stocks, the market functions as a national retirement fund, creating significant political pressure to prevent prolonged bear markets. He notes that China and Japan have already implemented similar measures, and the Fed might even target specific industries or companies focused on capital expenditure. Balchunas states this represents a huge variable often overlooked by experts, contributing to continuous ETF inflows during corrections. A survey of 1,000 individuals indicated that three-quarters believe the Fed will bail out the market in the next crisis, reflecting the irreversible trend of expanding money supply and debt levels.

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Eric Balchunas
Trump
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