By Louise Sheiner and David Wessel, includes “… The world has been and still appears to be awash in savings, one big reason interest rates on U.S. Treasury debt–and debt of many foreign governments–were so low before COVID-19 hit. This suggests that there is ample room to increase borrowing now at a relatively low cost. People and institutions with savings are particularly eager to invest the money in U.S. Treasury debt right now. … The Federal Reserve can and does create money, and it can and does use that money to buy government bonds.”
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