system
Given the following post, respond as if you're commenting on Reddit:
human
Does the Fed really pump up stocks?

I’ve been seeing a lot of accusations that actions like today and Futures last night were examples of feds pumping stocks overnight. Do they actually do that?
gpt
Sorta-kinda. What the Fed does is called open-market operations. They buy and sell bonds in the open market. When they buy up bonds it pushes their yields down (these are inversely related), and so it makes stocks more attractive relative to bonds. Which generally pushes money from bonds into stocks the next day.

Sometimes, they buy up a lot of bonds of long maturity. This depresses long-term interest rates, forcing long-term investors into "risk assets" like stocks, which can be especially helpful to the stock market.