Julia Coronado, founder and president of MacroPolicy Perspectives, says “the purpose of buying Treasury and mortgage bonds is to make sure that, one, markets continue to function.” The Fed played an important role in helping mitigate some of the economic turmoil earlier this spring with these debt purchases. “But more importantly,” Coronado said, the purpose of bond buying is also “to keep longer-term interest rates low. Those are the rates that support the housing market and the purchases of cars and other consumer durables. So they really want to make sure those low rates stay in place and are supporting the economy.”