Category Archives: interest rates

The Fed and Lowering Long-Term Interest Rates

How does the Fed lower long-term interest rates? The Federal Reserve owns about $1.7T in US treasury securities (e.g. bonds issued by the federal government), which is about a trillion more than they owned before the¬†quantitative easings¬†of 2008 and 2010. … Continue reading

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Quantitative Easing

What is it basically? An “expansionary monetary policy”: that is, a policy that attempts to increase the size of the money supply, typically with the goal of lowering interest rates. Lower interest rates encourage (1) investors to look for higher … Continue reading

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