Lv 6
asked in Business & FinanceInvesting · 2 months ago

Anyone know WHERE "the Federal Reserve" gets the money & power to just declare they are buying TRILLIONS of dollars of Corporate debts?

How does this work? and i mean they are actually paying for it? or are they billing it to the US treasury? how they got so much money? why the USA owes them 22 Trillion dollars? is it true?

2 Answers

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  • kswck2
    Lv 7
    1 month ago

    Only world governments can spend so much money without going belly up. And it is not that they owe it to the Federal Reserve, rather it is that they owe it to Everyone. But the full explanation of it is way too complicated to answer in this short space

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  • Bryce
    Lv 7
    1 month ago

    I think they actually just type the number into a computer to create trillions of dollars.  They use the money to buy treasury securities, mortgages, and other debt and use debt payments to retire the debt.  Any profits go to the US Treasury.

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