GD Star Rating GD Star Rating This article explores the
immediate and long-term effects of the Federal ReserveThe
central bank in control of regulating the U.S. financial and
monetary system.’s (the Fed’s) purchase of $1.25 trillion in
mortgage-backed bondsAn assetA valuable item which can be
converted to cash by its owner.-backed security representing a
claim on the cash flows received on a mortgage loan. (MBBs)
during 2009 and 2010, and the current and future benefits of Fed
purchases for homebuyer financing. The federal responsibility to
regulate America’s central bank is responsible for limiting the
harmful effects of falling prices and unemploymentWhen an
employee loses their job, resulting in no income. associated
with the nation’s reduced spending power in times of economic
crisis. While many of the painful signs of a recessionAn
economic event triggered and controlled by the Federal Reserve
to maintain the sustainability of economic growth. are beyond
the government’s direct control, the U. S. Federal