With the federal funds rate near zero and the economy still struggling,in response to already low interest rates doing little to stimulate the economy,the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low.This policy is known as

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Quantitative easing refers to the Fed's policy of buying certain types of assets, such as Treasuries and mortgage-backed securities, to increase the money supply and keep interest rates low. This is done when traditional monetary policy tools, like lowering the federal funds rate, are no longer effective.

With the Federal Funds Rate near Zero and the Economy