U.S. Injecting Billions Into Foreign Central Banks

[Kevin_Kennedy]

For more than a year, the U.S. Federal Reserve System has been increasingly acting as the world's central bank, injecting hundreds of billions of dollars into foreign government treasuries in an effort to increase liquidity in those countries.

The foreign central banks have used the U.S. currency to bail out financial institutions within their borders. The Fed program links its balance sheet directly to the fates of foreign central banks at a time when they're on the ropes.

U.S. Injecting Billions Into Foreign Central Banks

 

[Neubarth]

I always thought we WERE the world central bank.

 

[Kevin_Kennedy]

I always thought we WERE the world central bank.

No, but the dollar is the world reserve currency.