5 ms·
Notably, it's a temporary creation. As those bonds get paid off, along with interest, the fed must either roll that money over to buy more, or simply disappear
by jjeaff 4y ago
Notably, it's a temporary creation. As those bonds get paid off, along with interest, the fed must either roll that money over to buy more, or simply disappear it off their balance sheet. Which is part of what they are doing now with Quantitative Tightening or QT.