Understanding Finance Vs Economics

By buying financial institution securities, the Fed reduces supply within the Treasury market, which increases the costs and lowers the return on these long-term notes. Those yields set the benchmark for long-term fixed-rate mortgages and company bonds. As the warfare in Ukraine continues endlessly, European leaders are on the lookout for ways to additional tighten sanctions on the Russian financial system. The monetary sanctions have been impactful, driving up Russian inflation, lowering anticipated Russia GDP, and creating shortages of consumer merchandise for Russian customers. Moreover, there are reviews that President Putin has given up hope of reaching a peace settlement with Ukraine.