Quarterly Economic Report, Q1 2021
The Fed continues to support the market by keeping interest rates low.
Fed is leaving the fed funds rate at the zero bound, targeting over 2% inflation before rate hikes.
2020 was a record year for US IG corporate bond issues.
As economy was recovering, liquidity became less of a concern; companies continued to issue bonds.
Monetary policy can only help so much.
A sustained and robust recovery for the American consumer will require more fiscal stimulus.