Now suppose the Fed decides to adopt an inflation target of 5 % instead, which it achieves by buying up
private sector assets such as equities1 while still holding the Fed Funds rate at 0 %.
Not exact matches
Russia's central bank on Friday put the country's 10th largest
private lender by
assets under temporary administration, the third
such bailout in the Russian banking
sector in the space of three months.
As for the types of bonds, the central bank has already begun buying
private sector assets,
such as bundles of real estate loans.
The fact that the domestic
private sector also had some foreign loan
assets (as taken into account in net debt measures) would be of little assistance in
such a currency crisis.
It then uses this new money to buy
assets,
such as government bonds, from
private sector businesses including high street banks, pension funds and insurance companies.
This guidance document focuses on
private sector providers of capital as well as the intermediaries
such as banks and
asset managers.