The Federal Reserve further cuts the amount for which it buys government bonds on a daily basis. The US central bank system will buy $ 8 billion in debt securities on Monday, instead of $ 10 billion today.
The Fed has already bought more than $ 1,400 billion in government bonds in seven weeks. By pumping so much money into the financial system, the central bank umbrella hopes to prevent money markets from crashing amid the corona pandemic.
Last week, the daily buying pace was already reduced from $ 15 billion to $ 10 billion. Between March 19 and April 1, the provisional peak was reached with USD 75 billion in debt securities pledged daily. Then the tempo was lowered in steps.
About the author: Wesley C Waldo
Wesley C Waldo, a promising writer who is preparing to publish his first novel in 2023. Travels a lot and collects the clues for a new book. He writes on social topics, sometimes describes an event or two.