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The term "permanent basis" is the only part of the statement that prevents it from being a lie. The Federal Reserve does not want to do QE forever. But they h
by nostromo 12y ago
The term "permanent basis" is the only part of the statement that prevents it from being a lie.
The Federal Reserve does not want to do QE forever. But they have been doing that almost nonstop since 2008.
- yequalsx 12y agoThat's what the balance sheet aspect is. There is a due date on the securities purchased by the Fed. Thus there is a time a limit. The Fed does not consider quantitative easing as just printing money. I think if it were just printing money then people would not have faith in Treasury securities and thus the interest rate would be a lot, lot higher than it is now. EDIT: From the link supplied above: "Global demand for Treasury securities has remained strong, and the Treasury has been able to finance large deficits without difficulty. In addition, U.S. currency has expanded at only a moderate pace in recent years, and the Federal Reserve has indicated that it will return its securities holdings to a more normal level over time, as the economy recovers and the current monetary accommodation is unwound."
- elektronjunge 12y agoQE finished last October.