Quantitative easing is an unusual form of policy used when interest rates are close to 0%. Banks wake up the national financial system when usual monetary policies have become ineffective. In recent decades, the government's central bank has claimed to be the government's most important financial agency. Through its power to change interest rates and purchase massive amounts of financial assets, the Federal Reserve has had greater influence over economic growth and employment rates in recent times. than any other government entity. Under the Obama administration, it was used to prop up the financial system after the Wall Street collapse in 2008; it also gave the economy extraordinary methods of support during the recession, such as securities purchases, the creation of new lending platforms, and a weak recovery that lagged behind. The FED did not mention to anyone that the banks needed help in the form of emergency loans to assure their investors that their businesses were not in danger. These actions are attributed to quantitative easing, along with the stimulus bill and federal bank bailouts, which prevented a global depression. The central bank is providing asset purchases, emergency loans and other aid worth about $7.8 trillion, making it the government's largest effort in support of financial system. Quantitative easing lowers interest rates, makes it cheaper for banks to borrow money, and generally helps banks make loans that support activity in the economy. During recession, banks don't want to lend money, so quantitative easing is accompanied by methods of pumping money into the economy and lowering interest rates that central banks generally do not control. Buying significant debt by "expanding the balance sheet,...... middle of paper......slowly kept it from collapsing." Works Cited McGuire, Bill. “The Fed loaned billions to banks as part of the bailout, Bloomberg reports.” Businesses. 2011. Internet. March 28, 2012.Mallin, Jay. “Federal Reserve (Fed). » The New York Times, nd Web, March 21, 2012. Thornton, David. “Obama and gas prices”. Yahoo. Examiner.com, March 28, 2012. .Giokaris, John. Obama follows Bush and goes into debt: where is the Tea Party? " Greg Ip. Np, 02/18/2012. Web. March 27 2012.