Re:Consumer Prices in U.S. Increase by Most Since 2009
by pram on Wednesday May 12, 2021 @01:11PM
(#27132665)
QE and the repo operations the Fed does are “providing liquidity” to activity that would (presumably) normally happen anyway. I’d assume this would be the reason. You can argue the activity wouldn’t happen if interest rates weren’t kept artificially low.
Another thing is these security purchases are largely insulated from what is used to calculate inflation. These are exchanges between banks and funds and similar.
Another thing is these security purchases are largely insulated from what is used to calculate inflation. These are exchanges between banks and funds and similar.