The Federal Reserve’s Quantitative Easing: Questions and Answers
Publication Date: November 2010
Publisher(s): National Center for Policy Analysis (U.S.)
Author(s): Robert McTeer
Keywords: Quantitative Easing; Inflation; Bernanke; Unemployment
Coverage: United States
Recently, the Federal Reserve announced plans to resume monetary easing by purchasing $600 billion in U.S. Treasury bonds by June 2011. Bonds purchases give the sellers additional funds in their banks, which adds to banks’ reserves and lending ability. The Fed’s goal is to expand money and credit and thereby stimulate the economy.