QE and the FED

QE Explained :In normal times the FED will try and intervene in the market economic activity by targeting the FED rates , typically the FED does the open market operations (FED interventions by buying large amount of short term treasuries from general market) increasing the supply which decreases the demand for cash and thus lowering the interest rates. The idea of open market operations is to lower the interest rates.
Now rather than traditional open market operations the FED is not just buying just short term treasury securities, but going after long term treasury securities ,mortgage backed securities again mainly to inject cash in the market (Quantities Easing)

History : Japan did this back in 2001(from where the QE term is derived) and we are doing the same (Credit easing ) but with a little difference essentially we are printing money and rather than buying short term treasury assets we are spreading the composition of our shopping (MBS,AAA Corporate debt,long term treasury securities) which will affect the credit conditions for households and business.

Consequences :Direct injections of money into the economy can have a number of effects. The sellers of the assets have more money so may go out and spend it. That will help to boost growth. Or like in reality they may buy other assets instead, such as shares (share buy back policies) or company bonds which we have seen in past, the corporations have money ,they are already sitting on a lot of cash.

Buying MBS,AAA Corporate debt,long term treasury securities the FED’s anticipation of reenergizing economic activities looks too audacious