The Fed Loves Main Street as Much as Wall Street This Time

Federal Reserve Chair Jerome Powell and his colleagues had a hard decision to make as the coronavirus epidemic worsened in February and March. If they stuck to the standard policy of buying only highly rated bonds, they would likely be accused of favoring Wall Street over Main Street—the traditional rap on the Fed. If they got creative, they could help more sectors of the economy but they would almost certainly be accused of overreaching, picking winners and losers, rescuing the unworthy, and risking losses that would ultimately be borne by...