The Open Market Operation That Lowers Interest Rates

The Fed controls interest rates by changing the amount of money they're willing to create in the common so here's a specific example, if they're buying a, say, a three month treasuries. All right? If they buy those new treasuries, and they create the money to do it, that creates an increase in dem for those Treasuries. And by doing that, it raises the price of those treasuries,. And that and the inverse of that, as it lowers interest rates. By engaging in this open market operation, they lower interest rates. As they do that, they effect interest rates along what's called thed curve. That is, for longer term