The U.S. Federal Reserve on Sept. 13 announced a third round of quantitative easing to stimulate the national economy. The previous round of easing had lasted from November 2010 to June 2011.
Four years have passed since the failure of Lehman Brothers jolted the world economy. U.S. economic recovery remains slow. Even with the Fed's new action, there is the view that it will not have a dramatic effect. The U.S. economy stands at the crossroads of paths that may or may not lead to steady economic recovery.
On Sept. 14, the Fed started purchasing $40 billion per month in mortgage bonds in addition to $45 billion in Treasury bonds. The purchases will continue until employment prospects show significant improvement. This is the first time the Fed will continue quantitative easing without setting an end date.