# Fed fires an even bigger bazooka, expands its shopping list to include junk bonds

> The Fed expanded its pandemic lending to $2.3 trillion, adding programs for small and midsized businesses and state and local governments. It also added purchases of junk bond ETFs, which sent stocks up, the dollar down and gold higher.

- Date: 2020-04-09 · published 2020-04-09T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/53572-fed-fires-an-even-bigger-bazooka-expands-its-shopping-list-to-include-junk-bonds
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A broad liquidity expansion that weakens the dollar tends to lift dollar-priced commodities and supports demand from stabilized credit markets. The scale of the program makes it a meaningful macro driver.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-01-25 | [Fed set to look beyond possible post-pandemic inflation shock](https://feedsoft.ai/events/49071-fed-set-to-look-beyond-possible-post-pandemic-inflation-shock.md) | +0.4% | +0.3% |
| DXY | 2021-03-11 | [EUR and ECB: Dovish for bonds, but not for EUR \| articles \| ING THINK](https://feedsoft.ai/events/48339-eur-and-ecb-dovish-for-bonds-but-not-for-eur-articles-ing-think.md) | -0.4% | -0.3% |
| DXY | 2020-07-30 | [Fed extends swap lines and warns of slowing US economy - Central Banking](https://feedsoft.ai/events/52027-fed-extends-swap-lines-and-warns-of-slowing-us-economy-central-banking.md) | -0.3% | -0.5% |
| DXY | 2020-11-26 | [U.S. Dollar On Glide Path Lower as Fed Seen Eyeing Long-term Bond Yields](https://feedsoft.ai/events/50330-u-s-dollar-on-glide-path-lower-as-fed-seen-eyeing-long-term-bond-yields.md) | -1.2% | -1.5% |
| DXY | 2021-02-17 | [Fed minutes show willingness to steer past coming jump in inflation \| Reuters](https://feedsoft.ai/events/48543-fed-minutes-show-willingness-to-steer-past-coming-jump-in-inflation-reuters.md) | +0.1% | +1.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/04/09/fed-fires-an-even-bigger-bazooka-expands-its-shopping-list-to-include-junk-bonds.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.