Question
The Fed announced that they would purchase 700 million US follars worth of gov debt bonds and mortgage backed securities crom domestic financial institutions over
The Fed announced that they would purchase 700 million US follars worth of gov debt bonds and mortgage backed securities crom domestic financial institutions over the coming months, which is a policy known as quantitive easing. this program of quantitive easing has significantly increased the Fed balance sheet, because they pirchased such a large volume of asset. this action was taken in response to detrimental impact of Covid 19 on the US economy a. what are the goals of Fed when using quantitive easing b. what are the risk of quantitive easing
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