When the Fed buys securities does it decreases the money in circulation?

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1209676

2026-05-10 12:05

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No, it increases the money in circulation. It "creates" the money to buy the security, and that new money is in circulation. At present, the FED is buying U.S. bonds, as part of QE, and this increases the money supply. The goal is to speed up edconomic growth.

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