Tag: United States Treasury security

Should the Federal Reserve taper its bond buying program?

Since Quantitative Easing 3(QE3) started in September2012 the Federal Reserve  began purchasing 40 billion dollars worth of mortgage-backed securities a month. Four short  months later they started buying an additional $45 billion dollars worth of treasury bonds each month for a grand total of $85 billion a month.  The theory behind this plan is: the

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How A Bond Works

This article will aim to explain in simple terms how bonds work and how they can effect the economy. Let’s explain what it is: Let’s say a city needs $1 million to build a bridge.Not many people can afford to give them $1 million, but what the city does is start by creating a legal

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