<p>There have been no such announcements as far as I know. The <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20190918a1.htm" rel="nofollow noreferrer">press release from the Federal Reserve</a> mentions the following implementation details:</p>

<ul>
<li>Decrease in interest rate on required/excess reserve balances to 1.80 percent</li>
<li><a href="https://www.newyorkfed.org/markets/opolicy/operating_policy_190919" rel="nofollow noreferrer">Repo operations for up to an aggregate amount of $75 billion</a></li>
<li>Decrease in the primary credit rate to 2.50 percent</li>
</ul>

<p>My guess is that if these efforts do not have enough of an effect, then quantitative easing might resume soon as hinted by Powell:</p>

<blockquote>
  <p>"It is certainly possible we will need to resume the organic growth of the balance sheet sooner than we thought," Powell told reporters during a press conference. - <a href="https://edition.cnn.com/business/live-news/stock-market-news-today-091819/index.html" rel="nofollow noreferrer">CNN</a></p>
</blockquote>

CC BY-SA 4.0
2019-09-20T14:10:21.280Z
Thank you, I was able to find relevant information using the terminology you provided. So it seems the big hitter here is decreasing the interest rate on excess reserves, which should allow for the desired affect of increasing market liquidity by discouraging banks to park their excess reserves with the government and encourage them to lend to each other at a higher rate.
jyapx
CC BY-SA 4.0
2019-09-21T10:51:06.610Z
Keep in mind that IOER has really only came in effect since 08, so fed must've had success to increase/decrease rates without using this mechanism.
gtr32x
CC BY-SA 4.0
2019-09-20T07:02:23.920Z
2019-09-20T07:02:23.920Z
Kent Shikama
<p>I originally asked this question on personal finance/money because I didn't know that this exchange site existed. <a href="https://money.stackexchange.com/questions/114867/the-fed-lowered-interest-rates-are-they-going-to-buy-bonds">link to same question at person finance/money</a>.  Someone on that site mentioned that it might be off topic, so I thought I would try here.</p>

<p>The Fed just lowered interest rates yesterday by 0.25%. I haven't heard anyone mentioning a resurgence of quantitative easing (QE).</p>

<p>Is the Fed going to start buying bonds in order to influence the interest rate? If so, where can we find the dollar amount of bonds they are buying and over what time frame?</p>

<monetary-policy><interest-rate><money-supply><federal-reserve><quantitative-easing>
The Fed Lowered Interest Rates, Are they going to buy Bonds?
jyapx
# The Fed Lowered Interest Rates, Are they going to buy Bonds?

(Asked by: username_0 on 2019-09-19)

I originally asked this question on personal finance/money because I didn't know that this exchange site existed. [link to same question at person finance/money](https://money.stackexchange.com/questions/114867/the-fed-lowered-interest-rates-are-they-going-to-buy-bonds). Someone on that site mentioned that it might be off topic, so I thought I would try here.

The Fed just lowered interest rates yesterday by 0.25%. I haven't heard anyone mentioning a resurgence of quantitative easing (QE).

Is the Fed going to start buying bonds in order to influence the interest rate? If so, where can we find the dollar amount of bonds they are buying and over what time frame?

**Tags:** monetary-policy, interest-rate, money-supply, federal-reserve, quantitative-easing

---

## 1 answers

### Answer by username_1 on 2019-09-20. Score: 1 | Accepted answer

There have been no such announcements as far as I know. The [press release from the Federal Reserve](https://www.federalreserve.gov/newsevents/pressreleases/monetary20190918a1.htm) mentions the following implementation details:

* Decrease in interest rate on required/excess reserve balances to 1.80 percent
* [Repo operations for up to an aggregate amount of $75 billion](https://www.newyorkfed.org/markets/opolicy/operating_policy_190919)
* Decrease in the primary credit rate to 2.50 percent

My guess is that if these efforts do not have enough of an effect, then quantitative easing might resume soon as hinted by Powell:

> "It is certainly possible we will need to resume the organic growth of the balance sheet sooner than we thought," Powell told reporters during a press conference. - [CNN](https://edition.cnn.com/business/live-news/stock-market-news-today-091819/index.html)

> **Comments:**
> **username_0**: Thank you, I was able to find relevant information using the terminology you provided. So it seems the big hitter here is decreasing the interest rate on excess reserves, which should allow for the desired affect of increasing market liquidity by discouraging banks to park their excess reserves with the government and encourage them to lend to each other at a higher rate.  
> **username_2**: Keep in mind that IOER has really only came in effect since 08, so fed must've had success to increase/decrease rates without using this mechanism.  

---

