What exactly is "quantitative easing"?

[SoyUnGanador]

What is it exactly?

And I want to know if the Fed is going into the market and buying any Treasury bonds at all, or has it stopped doing that completely?

Thanks.

 

[LanceJ]

I just read the Lords of Easy Money, Christopher Leonard 2022
This helps understand QE.

 

[schizo]

What is it QE?

Essentially it's free money. They buy, buy, and still buy some more Treasuries and other government debts by printing money. This flows into and circulates throughout the economy. Hence why we're in this hyper-inflation.

And I want to know if the Fed is going into the market and buying any Treasury bonds at all, or has it stopped doing that completely?

As already noted, this is why we're in this hyper-inflation. So why the f*ck do you think they would do that? It's time for Quantitative Tightening, not easing.

 

[nooby_mcnoob]

Essentially it's free money. They buy, buy, and still buy some more Treasuries and other government debts by printing money. This flows into and circulates throughout the economy. Hence why we're in this hyper-inflation.

As already noted, this is why we're in this hyper-inflation. So why the f*ck do you think they would do that? It's time for Quantitative Tightening, not easing.

Please take a look at the central bank balance sheet year to date. They are not tightening shit and they will not tighten shit in the hope that inflation just works out. They might get lucky.

 

[SoyUnGanador]

Thank you schizo and mcnoob!

That's what I thought - them printing money to go out into the market and buy Treasuries is generally what quantitative easing consists of.

mcnoob, given that the Fed balance sheet looks relatively flat, that would be an indication that they are no longer buying bonds in the market, correct? Not tightening, but not buying bonds either?

If they were to "tighten", would they be out there selling those bonds? Do they ever do that as a practical matter?

Thanks!!!

 

[nooby_mcnoob]

Thank you schizo and mcnoob!

That's what I thought - them printing money to go out into the market and buy Treasuries is generally what quantitative easing consists of.

mcnoob, given that the Fed balance sheet looks relatively flat, that would be an indication that they are no longer buying bonds in the market, correct? Not tightening, but not buying bonds either?

If they were to "tighten", would they be out there selling those bonds? Do they ever do that as a practical matter?

Thanks!!!

Yes that's what they were supposed to start doing June 1. Surprise, they didn't.

 

[Paroult80]

I just read the Lords of Easy Money, Christopher Leonard 2022
This helps understand QE.

Yes, exactly!

 

[TheDawn]

What is it exactly?

And I want to know if the Fed is going into the market and buying any Treasury bonds at all, or has it stopped doing that completely?

Thanks.

Here is the latest monetary policy statement by the Federal Reserve. https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a.htm This is what the statement says specifically with regards to its treasury securities operations:

the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May.

What the Fed is doing right now is not Quantitative Easing. It's the opposite. It's called Quantitative Restrictive.

 

[cdcaveman]

Simply put it's theft...

 

[maxinger]

Quantitive Easing means EXACTLY this :

Allowing the Money printing machine to EASILY print huge QUANTITIES of money.


that's how the words
'quantitative', 'easing'
were derived.