Is There Anything Stopping the Fed From Purchasing Risk?

"I don't actually viewt fed as actually having any real legal constraints," he says. "The constraint really is political will, whether or not congress in andde an the white house would be ok." The reverse rebral operation is largely a mechanism to take care of the side effects of quantitative easing,. So quantity of easing creates too many bank deposits in the system. They can pushed off to the money market funds, who then deposit it at the fed.