The U.S. Federal Reserve stated on October 11th that it would increase easing in the economy by purchasing Treasury notes at $60 billion per monthly for the next two years. While the purchasing rate may decrease or increase, the central banks expects the easing plan that will last until at most Q2 2020. Jerome Powell, Fed chair and his partners also stressed that the central bank doesn’t want the media calling the purchasing plan another QE.
The Fed Approves $60 Billion in Treasury Securities Purchases per Month, but Don’t Call It QE
Friday’s statement by the Fed to the media stated that it intends to continue buying large quantities of securities in order stimulate the U.S. Economy. Following the two interest rate cut and $128 billion printing, the Fed said Friday that it will continue to buy large amounts of securities in order to stimulate the U.S. economy. New printing plans involve another $60 billion per monthly from now to November’s end, but buying will not cease until the second quarter in 2020. The central bank said that the number of purchases made after November will be announced each month on the ninth. In addition to large-scale repurchase deals, $60 billion per month will go toward Treasury bills. The repos have been managed by the New York Fed Branch, and will continue to be until 2019. Since 2012, when it printed around $85 billion per month, the Fed has not bought Treasury securities in this way. Check out more about Charity Coin
The Fed Will Inject $60 Billion Every Month into the Economy
Fed chair Jerome Powell.
Back then, the central bank did not hesitate to call the process QE (quantitative easing). This basically refers to the purchase of large-scale assets in an effort to …