The Federal Reserve will soon be relying on a new program to fund the world’s financial crisis, an issue that has divided experts and caused fierce debate among experts.
The Fed will soon have an emergency reserve fund that will be able to buy back trillions of dollars of government securities, including treasury bonds, mortgage-backed securities and other securities that the Federal Reserve purchases, according to an announcement Friday.
The announcement comes after the Fed’s bond-buying program is under scrutiny for its potential impact on the U.S. economy.
The fund will be available through September, according the Fed.
It’s a long way from when Treasury bonds were the primary way the Federal Government financed its massive $2.6 trillion in debt in 2009.
The program is expected to have a significant impact on U.A.E. debt and on the country’s financial stability.
But the Fed has said it is concerned about potential market-distorting effects from the move.
Fed Chair Janet Yellen and Fed officials have said they are considering “any and all actions to mitigate the impact of this unprecedented and potentially destabilizing event on the markets,” according to the announcement.