Some Securities Purchases But No QE From The Fed Yet
Sober Look | Nov 26, 2012 01:37AM ET
The Fed's latest securities purchases are still not having much of an impact on bank reserves (usually ) sterilized by auctioning off term deposits (securities purchases increase reserves, while term deposits "drain" them).
Without the increase in bank reserves, the US monetary base has been stable (unlike during previous balance sheet expansion programs). So far the Fed's securities purchases have not translated into quantitative easing (no "money printing" just yet).
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