What happens to treasury bond rates if the Fed buys a lot of them?

1 answer

Answer

1026244

2026-03-04 02:05

+ Follow

This (Federal Open Market Operation) is one kind of monetary policy adopted by Federal Reserve to increase the money supply in the economy. By purchasing the securities Federal Reserve make more money available to the public thereby increasing the liquidity in the market and hence consumer spending. Actually this method helps to boost the economy during economic downturns.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.