Fed to stay full throttle with credit support despite debt rally

Central bankers are likely to remain undeterred in both their credit and monetary policy support until the jobless rate gets closer to their full employment estimate of 4.1per cent

The Federal Reserve may have stoked one of the strongest corporate debt market rallies in decades, but it’s too soon to declare an all-clear for credit with the economy facing a potentially rocky road ahead.
 

Sure, US investment-grade borrowing costs have retreated to near all-time lows, and companies have sold $1 trillion of bonds at the fastest pace on record — evidence that merely announcing a plan to pump liquidity into corporate debt markets has helped ease strains before barely a dollar of central bank money was deployed.
 

But the Fed’s emergency pandemic lending programs are just getting started. Chairman