On September 13, 2012, the FOMC voted for QE3.62 It would be the biggest Fed expansion yet. Initially, the Fed committed to purchasing $40 billion per month in Fannie Mae and Freddie Mac agency bonds. What was different was that it undertook to do so until the Fed saw “substantial improvement in the outlook for the labour market.” Additionally, the FOMC announced that it would likely maintain the federal funds rate near zero as long as unemployment remained above 6.5 percent and the Fed’s inflation forecast did not exceed 2.5 percent. On December 12, 2012, the FOMC announced an increase in the
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