Sentences with phrase «suppressing longer term interest»

When the financial crisis hit the markets in 2008, the Federal Reserve embarked ultra easy monetary policy, which included cutting short - term interest rates to effectively 0 % while suppressing longer term interest rates through the purchases of long term Treasury debt and mortgage - backed securities — a program informally referred to as quantitative easing.

Not exact matches

When the Fed accumulated assets, one of its goals was to suppress long - term interest rates; the reduction of those asset holdings should have the opposite effect,» explains consumer banking expert Ken Tumin of

The last one here should come as no surprise given central banks have anchored short - term interest rates at zero and long - term rates continue to be suppressed by massive asset - purchase programs and the generally sluggish nature of the global recovery.

Granted, quantitative easing (QE) is merely a component of the Fed's efforts to suppress intermediate - to longer - term interest rates.