Ting Shen/Bloomberg via Getty Images Interest rates typically decline during recessions ... to take extreme action on interest, raising rates. Central banks practice countercyclical monetary policy, ...

Quantitative easing stimulates the economy by increasing bank lending and consumer spending. The Fed buys securities from banks, boosting their liquidity and lending capacity. Potential risks ...

It's been almost two decades since the Federal Reserve, America's central bank, first used quantitative easing (QE), an unconventional monetary policy tool. As Nancy Davis, portfolio manager of ...

Quantitative tightening happens after quantitative easing, as central banks tighten their balance sheets to curb negative outcomes like high inflation. The Fed came to the rescue with trillions of ...