Explore BrainMass
Share

Federal Reserve's Quantitative Easing Program

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Please help with the following problem:

The federal reserve has announced an end to their controversial quantitative easing bond purchase program. How will the economy react to this decision?

© BrainMass Inc. brainmass.com March 22, 2019, 2:51 am ad1c9bdddf
https://brainmass.com/economics/macroeconomics/federal-reserve-quantitative-easing-program-591167

Solution Preview

Question: The federal reserve has announced an end to their controversial quantitative easing bond purchase program. How will the economy react to this decision?

First, quantitative easing was one of the preferred solutions by the Federal Reserve in managing the U.S. economy particularly in trying to jumpstart its recovery from the 2007 economic crisis. Quantitative easing increases the Fed's balance sheet as a result of the direct purchase of the private sector's ...

Solution Summary

This solution provides a discussion about the Federal Reserve's quantitative easing program. It discusses why quantitative easy was a referred solution by the Federal Reserve, why this monetary tool has been considered controversial, and the the Federal Reserve's recent announcement to end the qualitative easing bond purchase program. The explanation is 254 words in total and includes one reference.

$2.19