Quantitative Easing During the Bush and Obama Administrations

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Quantitative easing is an unusual form of policy used when interest rates are near 0%. Banks rouse the nationwide financial system when usual monetary policies have become ineffective. In recent decades the government Central bank has argued they are the government’s most important financial agency. Throughout their power to change interest rates and buy massive amounts of financial assets, the Federal Reserve System applied more influence over economic growth and the employment rate in recent times than any other government entity. During the Obama administration it’s been used to sustain the financial system after the Wall Street meltdown in 2008; it also gave the economy extraordinarily methods of support during the recession such as…show more content…
Quantitative easing is in limited use when problems are a lack of need, businesses and consumers were not interested in spending during high unemployment times knowing that money is cheaper. Stock markets were advertised more, costs of American exports were lowered it also allowed companies to borrow money at lower interest rates. Using quantitative easing has helped the recovery of the USA and other developing countries. The Fed’s then limited their ability to pursue more measures, but congress ignored those appeals to help support the economy. The Fed’s decided to use smaller steps to help investor expectations and to prevent a possible financial crisis in Europe. In 2011 it was announced that the FED’s would hold short-term interest rates close to zero percent through 2013; to help support the economy. Soon after it was announced that using the “twist” operation would push long-term interest rates down, by purchasing $400 billion in long-term treasury securities with profits from the sale of the short-term government debt. Inaugurating a policy to help shape market expectations, which will raise interest rates at the end of 2014. This all started when Bush came into office in the 2000’s with a budget surplus left from former democratic President Bill Clinton. The first bill Bush decided to sign was the Economic Growth and Tax Relief Recognition Act of 2001, which cut tax rates across the board. Throughout the years

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