On: Fed cuts half point in emergency move amid spreading virus

[OscarCunningham]

What does the deficit have to do with the Fed? QE doesn't grow the deficit.

[liuliu → OscarCunningham]

Deficit is funded through debt (treasury notes). Fed buys treasury notes (through QE) and sets the interest rate on these debt. Lower interest rate in short-term reduces deficit (smaller coupon payment), but in longer-term encourages borrowing.