Quantitative easing (QE) differs from open-market purchases in that QE shrank the assets of the Fed whereas open market purchases expands the Fed's assets.

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Quantitative easing (QE) expands the Fed's assets by purchasing government securities and other financial assets, while open-market purchases also expand the Fed's assets through buying and selling government securities. Both QE and open-market purchases involve injecting money into the economy, but QE is a more aggressive and unconventional policy tool designed to stimulate economic growth during times of financial crisis.

Quantitative Easing (QE) Differs from Open-Market Purchases in That QE