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RE: President Biden Nominates Jerome Powell For A Second Term

in LeoFinance3 years ago (edited)

How about open market operations by central banks? I may be wrong but aren't those done with money created out of thin air by central banks? Central banks can buy any securities they want including sovereign bonds or corporate stocks, which they have done in recent decades.

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The Fed has to use dollars on hand unless it is dealing with member institutions. The policy of the Fed still has to adhere to these rules.

They do a lot of swapping, using reserves, on the Repo market with member institutions. This is often why there are three or four parties involved, because the right securities, cash, and reserves have to be lined up.

So they are printing out of thin air but not as most people take it.

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