I think the FED should also buy shares of the S&P 500 companies when markets are down like 20%, and keep buying until they hit bottom, then the FED would unload the shares back to the markets when the indexes hit all time high again... This way is for restoring faith in the financial markets. you know the puck stops here kind of thing. you have the full support of US government. As you've seen, they've purchased government bonds, and now starting purchasing corporate bonds (a form of corporate financing, stocks is also another form of corporate financing). Japan central bank has been doing it, so has Swiss bank. also Uncle Sam has made a lot of money on Fannie and Freddy deal for taking them under their mgmt. I think the intent is to keep the markets calm and orderly to prevent everyone from going bonkers (this is for the FED dealing with the psychological and emotional aspect of the financial markets or US economy) (everyone settle down! don't get too excited! The FED is here , yet they'd also make some money in the process (an unintended consequence).
Just like the Fed cuts rates in bad times and raises rates in good times. Just like the Federal government runs deficits in recessions and surpluses in booms. Once they buy, they will never sell.
The day will come when someone will have to bailout and buy The Fed. Not even Gates, Bezos, Buffett and China can scratch that kind of dough together.
Unless of hyper inflation or Trump surrounding them with the army and demands, not going to happen in our lifetimes. As only 1% of the general public cares about finances and even less understands it, the paranormal activity will keep happening in those institutions. While the ECB started printing euros as well, (don't know if for the first time tho), it becomes the game over for those who won't print. This is the good question, one has to go deeper under this topic, of when and why it could happen. (shall leave it for the day, when i buy some proper cookies next to a tasty coffee )
So what you're saying is... I should start a publicly traded company... And not give a fuck how it's run... Hmm.... I like this idea.