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In: Economics

How may the Fed's bond-buying program and purchases influence short-term and longer-term bond yields?

How may the Fed's bond-buying program and purchases influence short-term and longer-term bond yields?

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Expert Solution

The Federal reserve system is the central banking system of United states of America. It was created on 23 December 1913. It is popularly know as "The Fed". It is the most powerful financial institution of the world. The Fed supervises and regulates many banks and other financial institutions to promote stability in the financial markets. The Board of Governors sets guidelines for banks through regulations, policy and supervision. A lot of these guidelines are created because of new legislation.

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