Quantitative Easing
a.k.a. QE, Money printing
A central bank creating new money to buy bonds and other assets in bulk, to push down long-term rates and support the economy.
Quantitative easing (QE) is what central banks reach for when interest rates are already near zero and the economy still needs help. The bank creates new reserves out of thin air and uses them to buy huge amounts of government bonds, and sometimes other assets. That drives bond prices up and long-term yields down, making borrowing cheaper across the economy.
The Fed, Bank of Japan, Bank of England and ECB all used QE heavily after 2008 and again in 2020. More money chasing assets tends to weaken the currency, which is why traders dread, or cheer, every QE announcement.
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