Fed Set to Print? Breaking Story...

Today's expected Fed announcement:

(Reuters) - The Federal Reserve is expected to announce a fresh round of bond buying on Wednesday as part of its efforts to support a fragile economic recovery threatened by political wrangling over the government's budget.

Here's the important sentence in the article:

Unlike those in Twist, which were funded by sales and redemptions of short-term debt, the new Treasury purchases will further expand the Fed's $2.8 trillion balance sheet.

In other words, rather than sell something to raise cash to buy something else, the Fed will simply create money to buy bonds this time around. That's otherwise known as "printing" money.

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