US Federal Reserve Board (FRB) Chairman Powell said on the 8th in the short-term financial market where financial institutions lend and borrow money. The company announced that it will “announce soon” about measures to expand the supply of funds to the market through the purchase of assets such as government bonds.
In mid-September, US short-term interest rates rose sharply, triggered by increased demand for US corporations paying corporate taxes and buying government bonds. The market's anxiety was growing because it did not meet the target for the policy rate of the FRB.
Powell said in a lecture in Colorado on the 8th that "market instability may hinder the implementation of effective monetary policy and is working to resolve it," suggesting the expansion of asset purchases did.
On the other hand, he pointed out, “Expansion of the FRB balance sheet (by purchasing government bonds, etc.) should never be confused with the large-scale asset purchase strategy implemented after the global financial crisis.” He stressed that this is a different practical measure from “quantitative easing” to stimulate the economy.
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