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. Learn how QE fits in to the Fed’s monetary policy and some of the risks that can be associated with quantitative easing.
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