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10 / 2529 |
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The Fed does this by a process of buying interest-bearing debt that was previously issued by the Treasury Department. For example, the Board of Governors Federal Reserve System (2008) states the Treasury issues a bond for $1000 in order to fund its spending needs if tax revenues are not sufficient. The bond pays an interest to its holder at maturity...
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For example, the Board of Governors Federal Reserve System (2008) states the Treasury issues a bond for $1000 in order to fund its spending needs if tax revenues are not sufficient. The bond pays an interest to its holder at maturity. The Fed can buy the bond with a check for $1000 written in a checkbook that has been given by Congress...
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