To support such borrowing, the Federal Reserve has dropped interest rates to zero and added more than $2 trillion of loans to its portfolio in the past six weeks - as much as in the four years following the Great Recession....
In March, to smooth out dysfunctional trading, the Fed began buying $75 billion worth of government bonds every day.
The Fed has cut back to daily purchases of $30 billion, but that is still a staggering amount of central bank support. At the peak of the Fed's controversial crisis-fighting efforts in 2010, it was purchasing only $110 billion of government securities each month.
Today, it buys that much in less than four days.
No comments:
Post a Comment