Does Federal Reserve buying bonds (Tea Bills) create inflation?
Yes, the Federal Reserve buying assets (like bonds) injects money into the banking system, increasing reserves, which can lead to more lending, a larger money supply, and ultimately, higher inflation.
Does Federal Reserve buying bonds (Tea Bills) create inflation?
Yes, the Federal Reserve buying assets (like bonds) injects money into the banking system, increasing reserves, which can lead to more lending, a larger money supply, and ultimately, higher inflation.