I was reading an article some one sent me on the economic outlook and it mentioned the federal reserve bank and I realized I have really no idea what they do.
So I know they raise and lower interest rates, which trickle down to credit interest rates (yea/nay?)
But it also said the fed is going to lower "it's balance sheet" and withdrawing some of the money it invested?
That's the part I don't understand?
So what does the fed invest in? Is it with tax payers dollars?
So I know they raise and lower interest rates, which trickle down to credit interest rates (yea/nay?)
But it also said the fed is going to lower "it's balance sheet" and withdrawing some of the money it invested?
That's the part I don't understand?
So what does the fed invest in? Is it with tax payers dollars?