Problem
The Fed has historically been a "banker's bank." In the financial crisis of 2008-2009, for the first time, the Fed expanded into directly subsidizing and supporting other financial institutions such as mortgage brokerages and insurance companies. In the current pandemic crisis the Fed has expanded into purchasing state and local government bonds, corporate bonds, and making direct loans to small businesses across America. What are the political economy and public choice ramifications of this massive expansion and widening of power (by the Fed itself) for the future of the Fed?