This is a great explanation. Correct me if I'm wrong, but there is an important detail to note, which is the money supply is not being expanded significantly mo

This is a great explanation. Correct me if I'm wrong, but there is an important detail to note, which is the money supply is not being expanded significantly more in this action by the Fed any more than the normal course unless there is newly issued bonds/govt. debt. The problem is the govt. is reluctant to take on more debt, even though stimulus would be welcomed, because deficit worries persist. This Fed move will really seek to push down interest rates a bit more, by creating more demand for existing bonds. Unfortunately, these record low interest rates are not speeding economic recovery, and the money supply is not expanding (inflationary) as we would like, because banks are still hesitant to lend.