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in quantitative easing, the fed expands the size of its balance sheet to influence longer term...

in quantitative easing, the fed expands the size of its balance sheet to influence longer term interest rates such as mortgage rates. true or false?
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In quantitative easing, the fed expands the size of its balance sheet to influence longer term interest rates such as mortgage rates. The statement is True.

Quantitative easing (QE) is an unconventional monetary policy tool which the central bank use when conventional tools no longer work due to liquidity trap. In Quantitative easing Fed purchased longer term Government bonds to influence the longer term rates, such as mortgage rates. The aim was to reduce the yield on longer term borrowing and increase spending by more borrowing by economic agents to channelize the excess saving in the credit system.

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