The Federal Reserve Acquires Debt

A lot of people don't understand what Quantitative easing is. The federal reserve buys debt, just like you and i might buy debt. They now we might buy debt because we wanto do versify or portfolio ino some bonds that pay a rate of return. So whole point of the policy was to bit up the price of the debt so that the interest race on these bonds could fall. And that's what the intent of the fed has been it's expanded its purchases - not just to target the neartime interesta, but to targeting interestrates all along the yield curve.