What Is Quantitative Easing (QE), and How Does It Artwork?
What Is Quantitative Easing (QE)? Quantitative easing (QE) is a form of monetary policy in which a central bank, like the U.S. Federal Reserve, purchases securities from the open market to reduce interest rates and increase the money supply. Quantitative easing creates new bank reserves, providing banks with more liquidity and encouraging lending and investment.