Fed move is very bad. It is going to backfire banks in a big way.
I think you said it well Kumarn. The intent of these actions is not to bolster the economy, it is first and foremost to save the banks under the false pretext of saving the liquidity of the system, saving the economy, etc. If that happens too then hey, its gravy. The Fed, and probably all central banks, are there to represent the banks, not citizens. It is the folly of governments and citizens that we entrust governing in any way shape or form to them.
You will be made out to be irrational if you even question their actions. That's why the US Congress had neither the brains nor spine to question in 2009/2008, and it's why Western govs aren't questioning now. If this sort of action did work as advertised, where are the US banking loans to individuals/businesses? Where are the US jobs? Where is the US economy? None of these promises have panned out, and don't seem to anytime soon. Sure, they will say it would have been worse if they hadn't done what they did, but that is an alternate scenario that conveniently for them can't be proven or disproven because they didn't let it happen. Why again did we need to save those exact banks? Couldn't the Treasury have worked with other institutions? Couldn't new, better and healthier institutions have sprung up to fill the void? In return what did we get? Bigger, more bloated, still unhealthy financial institutions with toxic assets on books marked up, and future inflation that will make the lower and middle classes less able to afford basic living expenses. Thanks a bunch, glad those bank employee bonuses are back to where they were before the crisis! Too big to fail is too big to bail!
Years ago I had a teacher who stated that the US over the years was really run by - not the 3 branches of government, but these, not necessarily in this order: in the late 19th century he said it was the robber barons, after that the banking cartel, after that the military industrial complex, and after that the corporate oligarchy. Well I think he'd say we are now back to the banking cartel. As a youth I laughed at this "paranoid conspiracy theorist" up in front of our class, but now I at least respect his skepticism and cynicism. Perhaps he had something to teach after all.