Monetary stimulus measures conducted by the Federal Reserve have shown rather impressive results.

Since the Fed’s Chairman Ben S. Bernanke claimed on August 27 that it’s necessary to launch additional asset purchase program, the Standard & Poor’s 500 Index of stocks gained 18%. According to Bank of America Merrill Lynch index, the risk premium on high-yield, high-risk bonds decreased from 6.81% to 5.16%. Inflation expectations rose by 44.4%, while the unemployment rate has fallen to 8.9% in February, the lowest since April 2009.

Analysts at Deutsche Bank Securities approve the approach of US monetary authorities noting that the deflation risk has been successfully eliminated that helped the stock market rise.

The QE2 began on November 3 and is scheduled to last until the end of June. The Fed pledged to but $600 billion of Treasuries. The QE1 accounted for $1.7 trillion of asset purchases and finished in March 2010. The QE was criticized by the Republicans who feared the surge in prices. However, core inflation rose in January only by 0.2% in comparison with 2010 level.