In response to already low short-term interest rates doing little to stimulate the economy during the Great Recession, the Fed began purchasing mortgage-backed securities and long-term government bonds to bring down long-term interest rates. This policy was called

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Quantitative easing is a monetary policy used by central banks to stimulate the economy when standard monetary policy has become ineffective. The Federal Reserve implemented this by buying long-term securities, including mortgage-backed securities and government bonds, to lower long-term interest rates and increase the money supply.

In Response to Already Low Short-Term Interest Rates Doing Little