The Federal Reserve is currently in the process of unloading
trillions of bonds purchased during the years of Quantitative Easing.
Not exact matches
Launched three years ago to fight off the threat
of deflation, the ECB's 2.55
trillion euro ($ 3.14
trillion)
bond purchase programme has kept borrowing costs low to induce spending and investment, all with the ultimate aim
of generating inflation.
Valeri noted that could change, though, as occurred with the first round
of quantitative easing, where a massive $ 1.25
trillion purchase of mortgage - backed securities was followed months later by a large - scale
purchase of Treasury
bonds.
Awash in Liquidity The second round
of quantitative easing, known as QE2, follows the Fed's
purchases of nearly $ 2
trillion of bonds during the Great Recession.
If the whole thing — the rises in stock prices, in corporate earnings, in the housing market, even in job growth — is driven solely by the flood
of money, or whether five years
of zero - interest rates and
trillions of dollars in
bond purchases have succeeded at getting a more resilient economic engine for the United States up and running.
Central bankers around the world are debasing fiat currencies with rounds
of quantitative easing, resulting in
trillions of government
bonds being
purchased and swapped.
What I find unusual is that only 20 %
of the $ 1
trillion in
bond purchases, or $ 60 billion a month through at least September 2016, will be risk - shared across all
of the eurozone.
Bernanke had pushed the central bank to drop its key short - term interest rate to near zero and
purchased trillions of dollars
of government
bonds to lower long - term rates.
At that time, four out
of five American households
purchased the original Victory
Bonds, raising $ 185 billion (over $ 2
trillion in today's dollars) to support the war effort.
The Bank
of Japan has vowed to
purchase about $ 664 billion (yes, that's billion with a B) in Japanese treasury
bonds each year (80
trillion yen a year).
See todays Bloomberg News: ¨ Indirect bidders, a group
of investors that includes foreign central banks,
purchased 45 percent
of the $ 1.917
trillion in U.S. notes and
bonds sold this year through Nov. 25, compared with 29 percent a year ago, according to Fed auction data compiled by Bloomberg News.
From 2001 to 2005, foreign
purchases of U.S. Treasury
bonds and other debt instruments, including mortgage - backed securities, rose from $ 785 billion to $ 1.3
trillion, according to U.S. Bureau
of Economic Analysis data.
The federal tax credit program will end at the end
of April, the Federal Housing Administration is tightening the screws on its minimum standards, and the Fed plans to end it's 1.25
trillion dollar mortgage -
bond -
purchase program in just a few days.