Fed Knew It Had Crossed ‘Rubicon’ in March 2009 With QE

Ben S. Bernanke knew the Federal Reserve was passing the point of no return in March 2009, when it dramatically increased bond purchases to battle the severest recession since the Great Depression.

“I think that just crossing the Rubicon will have a significant announcement effect, because it will signal our willingness to do more if necessary in the future,” then-Chairman Bernanke told the Federal Open Market Committee as officials debated a $1.15 trillion increase in asset purchases, according to transcripts released in Washington on Wednesday.