Quantitative Easing Did Not Ease The Housing Crisis For The Neediest Households

Another tool to stimulate a distressed economy has made its way into the playbooks of central banks across the world. With quantitative easing, known as QE for short, a central bank makes it easier to borrow money by buying long-term assets and driving down interest rates. In the wake of the 2008 financial crisis, for example, the Federal Reserve orchestrated multiple rounds of QE. In the initial round, QE1, the Fed bought $1.25 trillion in mortgage-backed securities and $300 billion in Treasury bonds. During QE2, the Fed purchased almost $900 billion in Treasury bonds but no......(read more)

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