2 ms·
The way I understand it is that the fed has to(maybe not in law, but in practice) sell securities to accomplish its mandate of maintaining a stable currency. If
by tryptophan 9y ago
The way I understand it is that the fed has to(maybe not in law, but in practice) sell securities to accomplish its mandate of maintaining a stable currency. If they did not then it would cause lots of inflation. Is that correct?
- jganetsk 9y agohttps://en.wikipedia.org/wiki/Open_market_operation#United_States https://en.wikipedia.org/wiki/Open_market_operation#United_S... They are mainly trying to control the size of bank reserves by buying and selling securities, with the goal of hitting a target interest rate. When they are worried about inflation, they increase interest rates.