Quantitative Easing (QE)

Macro & the Fed

Quantitative easing is a central bank buying large amounts of bonds with newly created reserves; the Fed's purchases have been mainly Treasuries and mortgage-backed securities.

The aim is to push long-term rates down and ease financial conditions even when the policy rate is near zero. The purchases expand the central bank's balance sheet. Markets generally read QE as a supportive backdrop for risk assets.

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