US QE2

Conditions at the time

Economic recovery was slow, while employment and inflation did not sufficiently meet Federal Reserve objectives.

How events unfolded

On 11/3, the FOMC announced additional purchases of 6,000 hundred-million US dollars in longer-term government bonds.

Stakeholders and impacts

The Federal Reserve, government-bond investors, and borrowing households and businesses faced changes in long-term rates and financial conditions.

Information available at the time

Purchases were planned at roughly 750 hundred-million US dollars per month through the end of quarter 2 of 2011.

Findings confirmed later

The announcement distinguished reinvestment of principal from existing securities from new additional purchases.

Alternative interpretations and limitations

The planned amount reflects the policy path at announcement. Higher asset prices or emerging-market flows are not asserted as inevitable outcomes.

Source-based context and interpretation

QE2 distinguished reinvestment from additional Treasury purchases. In 2011/6 the FOMC confirmed that the additional purchases would finish that month while reinvestment continued. It also assessed recovery and employment as weaker than expected. Completing a purchase schedule was not the same as meeting economic objectives. ASSETCASTING interpretation: Ending new purchases while retaining holdings does not immediately remove all accommodation. Distinguish purchase flows, outstanding holdings and policy rates; implementation timing cannot attribute employment gains entirely to QE2.

Evidence coverage through 2011-06-22 · Sources checked 2026-10-14

• FOMC statement ↗
• FOMC statement — June 22, 2011 ↗

Related events and periods1

• Financial-crisis response and unconventional monetary policy →

  An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.