It always has been. Obama didn't start it, but the economic crash in 2008 caused the Fed to buy more federal and corporate debt than ever before. They had divested themselves of a fair amount of that when Covid hit and they had to start doing it again.
> “ … caused the Fed to buy more federal and corporate debt...”
Federal Reserve is not allowed to buy corporate debt.
That’s why the March 2020 rescue package allowed purchase of corporate junk bonds through what the President arranged as a Special Purpose Vehicle (SPV) with BlackRock acting as intermediary manager for the SPV.
Any such purchases are required to be backstopped by the US Treasury meaning the American taxpayer is ultimately responsible.
This was never done before. It has raised speculation that the US Treasury in effect took over the Federal Reserve, an assertion supported by material evidence. Such a move was heavily backed directly by President Trump.
What Are All the Fed’s Corporate & Investor Bailout Programs and SPVs? March 2020
In effect, the Fed lends to the SPV, the SPV absorbs targeted corporate bond debt and any Fed losses are backed by the US Treasury.
I disagree that the Fed has ALWAYS been a buyer of US Debt. Obama ran up US Debt to unprecedented levels based on NO EMERGENCY. The treasury bond sales were through the Open Market. When China and other countries backed away from buying Obama’s unjustified US Debt in open markets, Obama arranged for the Fed to directly purchase US Debt which was a pronounced departure from prior policy of the Fed.
Trump, who is a master of finance among many other things, saw that Obama had put the US Debt-to-GDP ratio at 100% in effect setting up the US for default.
Trump, rather than fight what Obama had done head on, saw that the Fed system was unsalvageable, devised a plan to demolish it and reset the currency to a gold standard.
In other words, Trump is milking the Fed for all it’s worth before he puts it down.
That’s why I say to out-of-touch living-in-the-past members of Congress, including GOP Senators, forget fiscal responsibility, that dog don’t hunt no more. Spend the Fed into oblivion and crash it. Give the President rein to spend the proceeds widely as needed.
Trump is a builder.
He sees a high rise building (the Fed) on a primary property site (The United States). He assesses the costs to bring back the building and upgrade it. But he sees that Obama has rendered the building’s structure not worth the cost to restore it. So Trump makes the decision to demolish the building, clear and clean the site, build a stronger foundation (sound money) and erect a new enduring skyscraper.