“The Federal Reserve has purchased $2.3 trillion in assets from banks to flood the economy with liquidity and drive down interest rates in order to stimulate the pace of economic recovery.
Under such policy, known as quantitative easing, the Fed goes in and buys assets like Treasury instruments or mortgage-backed securities from the banks, crediting those banks’ reserve accounts with the funds, in what critics says is basically money printing.
“The ability of the Fed to increase the amount of money in banks’ reserve accounts; that’s what most people mean when they talk about money printing and that’s under the direction of the Fed,” says Jim Bianco, president of Bianco Research, according to The Daily Ticker, a Yahoo! news venue…..”
If you enjoy the content at iBankCoin, please follow us on Twitter