While myriad economic processes have vast implications for our day-to-day lives, the majority of Americans remain oblivious to them. One highly debated issue is the end to the Bond Buying Program, a tool utilized by the Federal Reserve (Fed)—America’s central bank, responsible for controlling the money supply—to orchestrate stability in the economy and mitigate inflation. The program has endured scrutiny and criticism from economists and politicians alike for many years and currently stands on the brink of shutting down. So what is this program, and how will its end impact the lives of Americans coming out of a global pandemic?

The Fed’s Bond Buying program started as a reaction to the financial crisis in 2008, the most severe financial crisis since the Great Depression in the 1930s. The initiative works through the purchasing of bonds with treasury money, increasing the supply of money in circulation by exchanging bonds for circulating cash, liquid capital. Conversely, through the sale of bonds, the total money in circulation diminishes. The government uses this technique to reduce inflation and high-interest rates when the economy is unstable.

So now that the nature of the program is understood, why are many people pushing for its end? According to the United States Bureau of Labor Statistics, inflation has soared during the COVID-19 pandemic, specifically due to the obstacles of stimulating and reopening the country’s economy. Economists are apprehensive about this course of action, as it risks overstimulating demand and worsening supply congestion.