In October, the U.S. Federal Reserve carried out its final asset purchases as part of its latest asset purchase plan designed to help stimulate economic growth. This included the purchase of $10 billion in U.S. Treasuries and $5 billion in Mortgage Backed Securities in the final month. Given that the program is now over, it would be reasonable to expect that the Fed’s balance sheet would not longer be expanding in a meaningful way. But this has not been the case in the weeks since the end of the program. As a result, it is reasonable to question whether QE3 has really come to an end.
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