[{"data":1,"prerenderedAt":63},["ShallowReactive",2],{"term:open-market-operations":3},{"term":4,"related":46},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":39,"stem":40,"takeaways":41,"__hash__":45},"terms\u002Fterms\u002Fopen-market-operations.md","Open Market Operations",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-open-market-operations","Understanding Open Market Operations",[16,17,18],"p",{},"Buying bonds adds reserves to the banking system and tends to push interest rates down; selling bonds does the opposite. They were the main traditional tool for hitting the policy rate target.",[16,20,21],{},"Today the Fed mainly steers the federal funds rate by setting the interest it pays on reserve balances, while large-scale asset purchases have been used as quantitative easing.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","Central bank purchases and sales of government securities to manage reserves and interest rates.","md",[],{},true,"\u002Fterms\u002Fopen-market-operations",[35,36,37,38],"monetary-policy","quantitative-easing","federal-funds-rate","money-multiplier",{"title":6,"description":28},"terms\u002Fopen-market-operations",[42,43,44],"Buying securities adds reserves; selling drains them.","They help keep the policy rate on target.","Large-scale versions are called quantitative easing.","-ymeB6ozeBE5dhgZjcNj3pg8olsihQ557xs9hGfOFus",[47,51,55,59],{"title":48,"description":49,"path":50},"Federal Funds Rate","The interest rate U.S. banks charge each other for overnight loans, targeted by the Federal Reserve.","\u002Fterms\u002Ffederal-funds-rate",{"title":52,"description":53,"path":54},"Monetary Policy","How a central bank manages interest rates and the money supply to steer the economy.","\u002Fterms\u002Fmonetary-policy",{"title":56,"description":57,"path":58},"Money Multiplier","The textbook link between bank reserves and the total money supply.","\u002Fterms\u002Fmoney-multiplier",{"title":60,"description":61,"path":62},"Quantitative Easing (QE)","Large-scale bond purchases by a central bank to lower long-term interest rates.","\u002Fterms\u002Fquantitative-easing",1793374005547]