QE1, QE2, QE3: US Economy 2013
In 2008, Federal Reserve Chairman Ben Bernanke made his first step on the Quantitative Easing (QE) ladder in an effort to create more economic activity and higher home prices.
QE1 was initiated in November 2008 and ran until March 2010. During that time, the Federal Reserve snapped up $2.1 trillion worth of mortgage-backed securities and Treasury bills.7
After QE1 ended, many experts expected the economy to sputter to life and for mortgage rates to rise. Contrary to expectations, mortgage rates tumbled.
When the economy started to weaken, Bernanke enacted QE2. Between November 2010 and June 2011, the Federal Reserve printed an additional $600 billion. Read More