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submitted 1 day ago by yogthos@lemmy.ml to c/usa@lemmy.ml
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[-] humanspiral@lemmy.ca 1 points 11 hours ago

The recent historical money printing (bonds have to be repaid, and not technically printing) is QE = Quantitative Easing. The Fed makes up money, and uses it to buy real bonds, under the theoretical possible future of reselling the bonds later. It gives the interest paid on those bonds back to the treasury. While the activity is absurd, it tends to inflate bond prices (lower interest rates) because easy money is to buy bonds before Fed buys them back from you.

[-] yogthos@lemmy.ml 2 points 10 hours ago

Yup, that's also a mechanic that's being increasingly used. And with more money available and cheaper credit stimulates demand for goods, services, and assets. So you end up with increased amount of money chasing a relatively stable supply, which ultimately pushes general price levels higher, hence the process is inflationary.

this post was submitted on 24 Mar 2026
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