社区

Within months, the Fed will be buying zero dollars in Treasury bonds, compared with $65 billion a month as recently as November.

That could drag bond prices down, lifting their yields and making it more difficult for households and businesses to borrow money. Not only would that likely slow economic growth, but it also would mean less money will be flowing through financial markets, leaving less capital available to bid for stocks and other risky assets. And once the Fed has ended its bond-buying program, it will turn its attention to lifting short-term interest rates.

Can someone explain in layman’s terms how Fed not buying Treasury bonds impacts households? Impact on businesses I can understand but most households can’t afford the minimum $200k investmentin bonds. And even when household and businesses borrow, the money doesn’t necessarily flow into financial markets and stocks. I’m trying to understand the point that the writer is trying to make. Thanks