The Fed just lowered interest rates yesterday by 0.25%. I haven't heard anyone mentioning a resurgence of quantitative easing (QE).

Are they buying bonds in order to influence the interest rate? If so, where can we find the dollar amount of bonds they are buying and over what time frame?

  • 1
    I disagree that this is off-topic, because QE, interest rates, etc all affect Personal Finance. – RonJohn Sep 19 '19 at 20:43
  • 1
    These are two separate issues. The Fed funds rate is rate at which depository institutions lend other depository institutions overnight. Quantitative easing is where the Fed purchases bonds or other securities to increase the money supply and encourage lending. Also, agree that this question is not off topic. – Bob Baerker Sep 19 '19 at 21:10
  • @BobBaerker The Fed does not directly control rates. It does so through open market operations. I don't believe they are separate issues. – jyapx Sep 19 '19 at 21:15
  • 1
    The Fed funds rate influences the rates offered by banks and credit institutions to businesses and consumers and has a direct effect on the economy. It does not change the money supply which QE does. – Bob Baerker Sep 19 '19 at 21:38
  • 2
    While potentially on-topic here, asking this on economics.SE may also get answers. – Grade 'Eh' Bacon Sep 20 '19 at 14:52

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.