QUANTITATIVE EASING

The term quantitative easing (QE) describes a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

A central bank implements QE by first crediting its own account with money it creates ex nihilo ("out of nothing"). It then purchases financial assets, including government bonds, agency debt, mortgage-backed securities and corporate bonds, from banks and other financial institutions in a process referred to as open market operations.

Fed QE3 Launch Lifts US Stock Futures

U.S. stock index futures pointed to a higher open Friday as investors kept up a buoyant mood following the announcement of quantitative easing measures by the Federal Reserve, which is expected to boost economic growth.

Asian Markets Gain As Fed Launches QE3

Asian stock markets made gains Friday as investor confidence was lifted following the announcement of another round of quantitative easing by the U.S. Federal Reserve which is expected to rejuvenate the economic growth.

US Federal Reserve Sept. 13 Meeting Statement [Full Text]

In the statement, the Federal Reserve announced Thursday it will buy $40 billion per month of mortgage-backed securities, the start of the so-called third round of quantitative easing, QE3. The Fed also said it will continue 'Operation Twist,' bringing total securities purchased per month to $85 billion.

US Stock Futures Signal Lower Open Ahead Of Fed Decision

The U.S. stock index futures point to a lower open Thursday as investors maintained a cautious mode ahead of the Federal Reserve meeting in which there is the likelihood of another round of quantitative easing measures to be announced to invigorate the economy.

Asian Markets Rise On US Easing Hopes

Most of the Asian markets made gains Thursday as investors remained hopeful waiting for the policymakers in the U.S. to announce monetary easing measures to boost the global economy and rejuvenate the economic growth momentum.

US Stock Futures Signal Firm Open Amid Fed Easing Hopes

The U.S. stock index futures point to a higher open Wednesday as investor confidence was underpinned by expectation that the Federal Reserve will announce stimulus measures this week to invigorate the economy and boost growth.

Asian Stocks Gain On US, China Stimulus Hopes

Asian stock markets rose Wednesday as investors remained hopeful that policymakers in the U.S. and China would announce monetary easing measures to boost the global economy and rejuvenate economic growth momentum.

Fed Stimulus Hopes Buoy US Stock Futures

The U.S. stock index futures pointed to a higher open Tuesday as investor sentiment turned positive amid hopes that the Federal Reserve would announce monetary easing measures this week to revive the economic growth momentum.

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Asian Shares Rise After ECB Move, Awaiting US Payroll Data

Asian shares rose and the euro steadied Friday after the European Central Bank outlined its bond-buying scheme to help calm the euro zone's debt crisis, while firm U.S. data fed speculation of a strong jobs report later in the day.
Traders work on the floor of the New York Stock Exchange

Stimulus Expectations Buoy US Stock Futures

The U.S. stock index futures point to a higher open Tuesday as market sentiment was underpinned by expectations that policymakers around the world will announce stimulus measures to rejuvenate the economic growth momentum.
Gold

Gold Near 5-Month High on Stimulus Hopes

Gold hovered near a five-month peak on Monday, supported by hopes for more stimulus measures after U.S. Federal Reserve Chairman Ben Bernanke gave a grave assessment of the economy last week.
Fed Chairman Ben Bernanke

Bernanke's Speech at Jackson Hole: 6 Key Take-Aways

It seemed everyone was claiming their crystal ball has been right in anticipation of a much-hyped speech by the world's most powerful central banker, who managed to turn the attention of traders around the world to his podium in bucolic Jackson Hole, Wyo. Friday. They were all right and, as usually happens in such cases, they were also all wrong.
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