Topic

QE3i

Quantitative easing (QE) refers to large-scale asset purchases by the US Federal Reserve to inject liquidity in the world’s biggest economy after the onset of the global financial crisis in late 2008. In September 2012, stubbornly high US unemployment and faltering economic growth prompted it to launch the third phase of this stimulus (QE3), under which it planned to buy US$40 billion worth of bonds per month, with no set end date. As of late 2012, it had bought some US$2.3 trillion in long-term securities. In December 2012 it announced it was increasing its QE3 purchases to US$85 billion a month.

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Beijing will create a ministerial-level division dedicated to financial industry security within the new National Security Commission to be chaired by President Xi Jinping.

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The US Federal Reserve said it would continue buying bonds at a US$85 billion monthly pace for now, surprising financial markets that were braced for a reduction in the central bank's economic stimulus.

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