Quantitative easing

Quantitative easing is the Fed buying Treasuries and mortgage bonds with new reserves to push long-term yields down when the policy rate is already near zero. It works on the long end of the curve that a rate cut cannot reach, and it adds the cash that the Treasury borrows against.

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In MochaLearnSee how the Fed moves US markets in MochaLearn
  • Quantitative tighteningQuantitative tightening is the Fed shrinking its balance sheet by letting bonds mature without replacing them…
  • Term premiumThe term premium is the extra yield investors demand to lend for ten years instead of rolling short bills, for the…
  • Federal ReserveThe Federal Reserve is the US central bank, built in 1913 after the 1907 bank runs were stopped by one banker. It sets…
  • US TreasuryThe US Treasury is the government's borrower and the oldest name on the US market map: it issues bonds to cover the…
  • Market cap categories (mega/large/mid/small)Market cap categories group US companies by size: mega above $200 billion, large $10 to $200 billion, mid $2 to $10…
  • Dividend yieldDividend yield is the annual dividend divided by the share price; a $2 dividend on a $50 stock is 4%. It rises when…

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