the fed is buying 2-10 year treasures? buying alot of these instruments will bnring down rates on the aforementioned?
am i correct? what are they trying to do by doing what they announced yesterday/
Keep interest rates low and flood the market with money. When the Fed buys treasuries it is injecting money into the economy. When it sells treasuries it is withdrawing money from the market. What they are doing is massive injections of liquidity in the hope inflation will kick back in and inflate the value of assets yet again.