4 ms·
QE
by COGlory 3y ago
QE
- gruez 3y agoThe Fed is the cause of QE/ZIRP, but it's not "funded by taxpayers" in any meaningful sense. The mechanism by which QE is done is that the fed prints money and uses it to buy government bonds and other assets, which pushes bond prices up, and consequently yields (and therefore interest rates) down. All of this doesn't cost the fed anything. The money is printed by them, after all. It's not like they're borrowing money from some other bank at 2%, and then distributing to the wider economy at 0%.