ARSENAL > Quantitative easing (QE)

Quantitative easing (QE)

Macro
Definition
When the central bank buys bonds to inject money into the economy and push interest rates down. The Fed's bazooka for stimulating growth when rates are already near zero.
Example
The Fed bought $4.5 trillion in bonds during 2020 QE, pushing rates to near zero and inflating asset prices.
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