← Back to context

Comment by inigyou

9 hours ago

How will the fed do that? What will the side effects be? Why didn't it do that at the latest FOMC?

Qe, 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.

  • QE is effective when inflation is low or negative. It creates a larger money supply. Inflation is already high.