da'zman

The Fed is Running Out of Options

How does buying long term treasuries reduce the rate banks have to pay on deposits?

"The Fed has other options. It can go out on the yield curve and buy 10-year Treasuries to pull down long rates, such as conventional mortgage rates. That would lower the rates banks pay for deposits but would not increase their deposits; hence, it would not increase the amount of money they have to make loans."

I think I get what your trying to say but this makes no sense.