We discover a consumption channel of monetary policy in a model with money and government bonds. When the central bank withdraws government bonds (short-term or long-term) through open market operations, it lowers returns on bonds. The lower return has a direct negative impact on consumption by households that hold bonds, and an indirect negative impact on consumption by households that hold money. As a result, Örms earn less proÖts from production, which leads to higher unemployment. The existence of such a consumption channel can help us understand the e§ects of unconventional monetary policy.