US QE3

Conditions at the time

The assessment that US employment improvement and economic recovery were insufficient supported further policy easing.

How events unfolded

On 9/13, the FOMC decided to make additional monthly purchases of 400 hundred-million US dollars in agency-guaranteed MBS.

Stakeholders and impacts

The Federal Reserve, housing-finance markets, and borrowing households and businesses were the main parties to financial-condition easing.

Information available at the time

Rather than a fixed total, the approach proposed adjusting policy while checking for an improved labor-market outlook.

Findings confirmed later

The policy objective was to support the real economy through long-term rates and housing-finance conditions.

Alternative interpretations and limitations

Announced objectives differ from subsequent outcomes. Increased purchases do not immediately mean an equivalent increase in household lending.

Source-based context and interpretation

QE3 tied purchases to substantial labor-market improvement. In 2014/10 the FOMC judged the outlook much improved and ended new purchases, while maintaining reinvestment and low rates. Inflation still undershot its longer-run objective and housing recovery remained slow. ASSETCASTING interpretation: Purchase termination is neither achievement of every objective nor immediate tightening. Weak prices and housing can constrain rate increases despite better employment. Distinguish new purchases, reinvestment and policy rates when reading an exit announcement.

Evidence coverage through 2014-10-29 · Sources checked 2026-10-14

• Federal Reserve issues FOMC statement ↗
• FOMC statement — October 29, 2014 ↗

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.