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Printing money and lowering intrest rates are the same lever. When they lower interest rates more people sell bonds. The Fed buys those bonds with printed money
by OscarCunningham 7y ago
Printing money and lowering intrest rates are the same lever. When they lower interest rates more people sell bonds. The Fed buys those bonds with printed money. When the Fed prints money they then buy something with it. When they buy bonds it lowers interest rates. They sometimes buy shares but that has the same effect.