Tuesday, September 11, 2012

QE Timeline Update

by Bill McBride on 9/11/2012 02:12:00 PM

By request, here is an updated timeline of QE (and Twist operations):

November 25, 2008: Press Release: $100 Billion GSE direct obligations, $500 billion in MBS

December 16, 2008 FOMC Statement: Evaluating benefits of purchasing longer-term Treasury Securities

January 28, 2009: FOMC Statement: FOMC Stands Ready to expand program.

March 18, 2009: FOMC Statement: Expand MBS program to $1.25 trillion, buy up to $300 billion of longer-term Treasury securities

March 31, 2010: QE1 purchases were completed at the end of Q1 2010.

August 27, 2010: Fed Chairman Ben Bernanke hints at QE2: Analysis: Bernanke paves the way for QE2

November 3, 2010: FOMC Statement: $600 Billion QE2 announced.

June 30, 2011: QE2 purchases were completed at the end of Q2 2011.

September 21, 2011: "Operation Twist" announced. "The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less."

QE Timeline
June 20, 2012: "Operation Twist" extended. "The Committee also decided to continue through the end of the year its program to extend the average maturity of its holdings of securities."

August 31, 2012: Fed Chairman Ben Bernanke hints at QE3: Analysis: Bernanke Clears the way for QE3 in September

This graph show the S&P 500 and the Fed actions. Click on graph for larger image.

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