What will be their effect of the economy

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Reference no: EM131073795

Last year the Federal Reserve was buying treasury bonds at the rate of $85 billion a week. The Chair of the Federal Reserve has indicated that such policy is not going to continue this year.

What was the purpose of these purchases?

Once these purchases stop, what will be their effect of the economy? On the financial asset prices?

Reference no: EM131073795

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