Not quite the end of quantitative easing
05 November 2014
As expected, the US Federal Reserve (the Fed) announced an end to its quantitative easing (QE) bond-buying programme. With short-term interest rates already at zero, the Fed first employed QE in the wake of the 2008 credit crisis to improve banks’ balance sheets, unfreeze credit markets, stabilise the US economy, improve confidence and reduce long-term interest rates to help the property market. QE was also aimed at supporting asset prices and the wealth effect on spending.