U.S. Federal Reserve Minutes Show Active
Discussion of QE3
The U.S. Federal Reserve discussed “a new largescale asset purchase program” commonly called
“QE3.” Some members said such a program
could help the economy by lowering long-term
interest rates and making financial conditions,
more broadly, easier. They discussed whether
a new program should snap up more Treasury
bonds or buy mortgage-backed securities issued
by the likes of Fannie Mae and Freddie Mac.
Source: The Wall Street Journal , August 22, 2012
What would the U.S. Federal Reserve do to
implement QE3, how would the monetary base
change, and how would bank reserves change?
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