Fed Minutes Show Active Discussion of QE3 The FOMC discussed “a new large-scale asset purchase program” commonly called “QE3.” Some FOMC members said such a program could help the economy by lowering long-term interest rates and making financial conditions more broadly easier.

They discussed whether a new program should snap up more Treasury bonds or buy mortgagebacked securities issued by the likes of Fannie Mae and Freddie Mac.

Source: The Wall Street Journal, August 22, 2012 What would the Fed do to implement QE3, how would the monetary base change, and how would bank reserves change?