5 ms·
> Which may have a bigger effect. Could you please explain? Isn't that just a way to "enforce" the target rate in auctions to the primary market?
by mtremsal 5y ago
> Which may have a bigger effect.
Could you please explain? Isn't that just a way to "enforce" the target rate in auctions to the primary market?
- avrionov 5y agoHere is a good explanation: https://www.brookings.edu/blog/up-front/2021/07/15/what-does-the-federal-reserve-mean-when-it-talks-about-tapering/ https://www.brookings.edu/blog/up-front/2021/07/15/what-does... The federal reserves buys bonds / treasures and mortgage backed securities. It has an effect on long term interest rates and mortgages (keeping the interests low).
- mtremsal 5y agoI see. Thank you. I thought these purchases had stopped years ago when in fact the balance has never been higher.