With interest rate cuts no longer an option, Uncle Ben launch his Quantitative monetary easing policy by using money. Uncle Ben went shopping by his massive plan to buy up mortgage-backed securities, agency debt, and Treasuries to boost the economy and the markets.
Quantitative monetary easing policy carries out monetary easing by using money supply rather than interest rates as its main tool. The benefit of this policy is that more funds can be supplied, even after official rates fall to zero, thereby expanding monetary easing further.
Any country central bank buying its own country's securities raises the risk that it needs to print money to finance debt, leading to higher inflation. However, the Fed held the view that currently the deflation was a risk to the
Uncle Ben action caused the dollar traded near the lowest in two months against the euro. As dollar weaken against the majors, it weaken more against the Yen. By
