4 ms·
How will the fed do that? What will the side effects be? Why didn't it do that at the latest FOMC?
by inigyou 3mo ago
How will the fed do that? What will the side effects be? Why didn't it do that at the latest FOMC?
- mono442 3mo agoQe, yield curve control or possibly other market operations. There won't be any real consequences, it's just an asset swap. They buy bonds and in turn create new interbank reserves.
- inigyou 3mo agoIf there are no bad consequences, why haven't they done it yet?
- mono442 3mo agoI'm not sure. Probably because they want to maintain the appearance of central bank independence. The yields aren't even that high. They were much higher in the past.
- scoofy 3mo agoQE is effective when inflation is low or negative. It creates a larger money supply. Inflation is already high.