Two ways. First, lower bank reserve requirements (now less than 1%). Second, buying Treasury bills to the tune of $2 billion last week alone.
Total bank credit creation zoomed up 500% in October !
I am surprised that the dollar has not fallen more given the magnitude of the stimulation.
BUMP
What's your source for that? The Federal Reserve almost never changes the reserve requirement. The overnight funds rate is the monetary tool of choice.
Second, buying Treasury bills to the tune of $2 billion last week alone.
That's a meaningless statistic taken by itself. The Federal Reserve participates in the bond market on a daily basis in order to keep the interest rate near its target in the overnight funds market. Their target rate is currently very high. It is higher than the yield on much longer term government securities.
Total bank credit creation zoomed up 500% in October !
Another meaningless statistic. It's up 500% compared to what?