www.tigersoftware.com/TigerStudies/TS9sonDJIA/QEs.html
(C) 2015 William Schmidt, Ph.D. 1/15/2015
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Quantiative Easing
See http://en.wikipedia.org/wiki/Quantitative_easing
Phase 1 -
In late November 2008, the Federal Reserve started buying $600 billion in mortgage-backed securities.[37]
By March 2009, it held $1.75 trillion of bank debt, mortgage-backed securities, and Treasury notes;
this amount reached a peak of $2.1 trillion in June 2010. Further purchases were halted as the economy
started to improve, but resumed in August 2010 when the Fed decided the economy was not growing robustly.
After the halt in June 1010, holdings started falling naturally as debt matured and were projected to fall to $1.7
trillion by 2012. The Fed's revised goal became to keep holdings at $2.054 trillion. To maintain that level,
the Fed bought $30 billion in two- to ten-year Treasury notes per month.
THE FED and OBAMA's ASSURANCES TO BANKERS
TURN THE MARKET AROUND.
Phase 2 -
In November 2010, the Fed announced a second round of quantitative easing, buying $600 billion
of Treasury securities by the end of the second quarter of 2011.[38][39]
Phase 3 A and B-
"QE3", was announced on 13 September 2012. In an 11–1 vote, the Federal Reserve decided to launch
a new $40 billion per month, open-ended bond purchasing program of agency mortgage-backed securities.
Additionally, the Federal Open Market Committee (FOMC) announced that it would likely maintain
the federal funds rate near zero "at least through 2015."
On 12 December 2012, the FOMC announced an increase in the amount of open-ended mortgage purchases
from $40 billion to $85 billion per month.[47]
Tapering
19 June 2013, Ben Bernanke announced a "tapering" of some of the Fed's QE policies contingent upon
continued positive economic data. Specifically, he said that the Fed could scale back its bond purchases
from $85 billion to $65 billion a month during the upcoming September 2013 policy meeting.[48
September 2013, the Fed decided to hold off on scaling back its bond-buying program.[51]
Morthage purchases were halted on October 29, 2014.[52] after accumulating $4.5 trillion in assets.[53]
