QE 1

Full Name
Quantitative Easing Period 1
Event Type

After the 2008 stock market crash, the Federal Reserver rapidly increased its balance sheet in order to flood the financial system with liquidity and lower interest rates.

During this short period of time the Federal Reserver more than doubled its balance sheet
  • Went from ~925 billion to ~2,250 billion
  • The Fed purchased bonds with these funds
  • The significant buying pressure pushed interest rates down