Blackrock, Inc. (BLK)

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Blackrock now the Fed’s pet project to buy stocks to lift the fake stock markets as needed.


(Source: Federal Reserve's website)

You can see that according to the Exhibit B, this is the power of attorney language for BlackRock to “manage, supervise, and direct the investments” for the Fed’s account. Clearly, the language in Exhibit B says, “transact in any and all stocks, bonds, cash held for investment and other assets.”

Scott Minerd's opinion -- The Fed will likely buy stocks
Let’s see how well-known financial people are saying about this. Scott Minerd, Global Chief Investment Officer at Guggenheim Partner said in a recent CNBC article, that “a reckoning is coming, and soon. He expects the S&P 500 will retest its March 23 low of 2,237.40 over the next month, potentially crumbling to as low as 1,600.” It should be noted that Minerd is one of the more bearish people on Wall Street right now. Scott Minerd further adds, "there's a point where the Federal Reserve is going to have to pull out a bazooka," Minerd said in an interview. "And I think the option of buying stocks on the part of the Fed is on the table." Clearly, if the stock market does continue to fall due to sustained high unemployment rates, then it would erode confidence among consumers, small businesses and CEOs.