Quantitative Easing (QE) and How the Fed Responds to Financial Crises

Quantitative easing (QE) is a nontraditional money supply tool where the Federal Reserve buys securities like Treasuries and mortgage-backed securities in order to help boost the economy. The Fed is charged by congress to stabilize inflation and keep unemployment low. This is done through monetary policy, which is how the Fed influences conditions in the U.S. economy.
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