FRB US short-term government bond $ 60 billion monthly purchase 12:11:39 on October 12 due to a rapid rise in short-term interest rates
The Federal Reserve Board, the US central bank, has decided to purchase short-term government bonds every month at a rate of 60 billion dollars to fund short-term interest rate surges.
According to the announcement, the FRB decided to buy short-term US government bonds at a pace of $ 60 billion a month and Japanese yen at a pace of approximately 6.5 trillion yen at least until June next year.
This is because last month's interest rate surged and became unstable in the short-term financial market where banks exchanged funds, so the purpose of the FRB to supply funds to the market by purchasing government bonds and to stabilize interest rates there is.
Regarding the purchase of government bonds by the FRB, quantitative easing was carried out on a large scale after the Lehman shock, but with the subsequent expansion of the economy, it was turning to a tightening direction to return monetary policy to normal.
For this reason, some people in the market think that the purchase of JGBs may be a resumption of quantitative easing, but the FRB has declared that it will not change the stance of monetary policy. Announced and emphasized that it is not a quantitative easing measure for economic crises.