When the Federal Reserve buys a Treasury security, it pays with newly created money that is deposited into the reserve accounts that commercial banks hold at the Federal Reserve.
October 29, 2025
high
process
Describes the mechanics of open-market purchases and their effect on bank reserves.
Commercial banks sometimes offer short-term financial assistance to customers affected by missed federal paychecks during U.S. federal government shutdowns, including measures such as zero-interest loans or temporary fee waivers.
high
economic
Describes a common private-sector response to income disruptions caused by government funding lapses.