March 19, 2009 11:56AM 

# More Cheap Money from the Fed 

By [David Boaz](https://www.cato.org/people/david-boaz) 

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The Federal Reserve announced that it would create $1.2 trillion [out of thin air](http://www.ncpa.org/pub/ba611) and use it to buy mortgage-backed securities and Treasury bonds, [even though](http://www.washingtonpost.com/wp-dyn/content/article/2009/03/18/AR2009031802283.html?nav%3Dhcmodule&sub=AR)

> Some Fed leaders have resisted buying Treasurys in the past because they were unsure whether it would help reduce borrowing costs and because they feared that it would appear that the central bank was simply printing money to finance the government’s deficit, a hallmark of countries with poorly managed economies.

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