monetary policy---TheFederal Reserve Bank is the monetary authority here in the US
responsible for maintaining the world’s reserve currency. The Fed’s “discount window” sets
interest rates on the loans it makes to banks, and the new cash the banks get
increases their reserves (banks are required to keep a fractional amount of
their loans in cash), and therefore impacts their ability to make new loans…The
Fed’s Open Market Committeebuys and sells US Treasuries and other assets, a process known
as quantitative easing or QE.
responsible for maintaining the world’s reserve currency. The Fed’s “discount window” sets
interest rates on the loans it makes to banks, and the new cash the banks get
increases their reserves (banks are required to keep a fractional amount of
their loans in cash), and therefore impacts their ability to make new loans…The
Fed’s Open Market Committeebuys and sells US Treasuries and other assets, a process known
as quantitative easing or QE.