The underlying Yahoo News article doesn’t actually talk about Fed buying corporate bonds. It only states:
” [Yellen] said, ‘future policymakers might choose to consider some additional tools that have been employed by other central banks,’ including buying a wider range of assets [ with newly created money.]”
But just imagine if the Fed did start buying corporate bonds, what a wave of corruption it would set off. The Fed in effect already favors big companies over small and subsidizes them with low rates to finance their stock buy backs, which in turn both encourages and subsidizes massive corporate campaign contributions to politicians. This is in addition to the boost that federal deficit spending gives to big company profits (most of this “stimulus” goes right into corporate profits today). But if the Fed also directly bought bonds and stocks? What a gusher of campaign money would result.