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I am dumb. How does Treasuries maturing help with QT (not questioning this, just not clear on this)?
by silentsea90 4y ago
I am dumb. How does Treasuries maturing help with QT (not questioning this, just not clear on this)?
- almost_usual 4y agoThe Fed injects money into the economy by buying US Treasuries or GSE MBS traditionally from the open market (QE). During continued QE the Fed will re-purchase these assets when their existing ones mature. During QT on maturity rather than buy assets again they write them off and liquidity (money) is removed from the market.
- silentsea90 4y agoThanks!