The target rates for QE are 6.5% unemployment and 2.5% inflation. When either of these targets is hit, it is expected that the Federal Reserve will end QE. Federal Reserve economists predict that these target rates will be hit in 2015. These targets are not binding, however, and the Federal Reserve could end QE before or after 2015, whether or not the target rates are met.
Fed Balance Sheet
Quantitative easing has resulted in the expansion of Federal Reserve’s balance sheet from $1 trillion to over $4 trillion since late 2008.
Effect on Interest Rates
Quantitative easing influences interest rates lower than they may have been otherwise.