Since American subprime crisis in 08 years, Federal Reserve Board has implemented the quantitative easing policy (referred QE) three times to stabilize the financial market. The purpose of this policy is to control the scope of the whole economic system affected by the financial crisis and to provide low interest rate environment assisting economic recovery. The QE policy can be mainly divided into direct asset purchase programs and forward guidance. The central bank want to achieve lower credit rate, long-term and short-term bond yield through this policy, stimulating enterprise investment growth and family and business spending to avoid the economy falling into a vicious circle of deflation.
This paper adopted general equilibrium model, with Doh（2010）term structure of interest rates function to explore the effectiveness of Economic Recovery via executing QE3 policy, especially in the construction of term structure and GDP. QE3 policy depress market interest rate, FED hopes to stimulate investment and consumption growth, thereby increasing the GDP. This article focused on the result about effectiveness of interest rates and GDP by FED's policy and examined whether QE3 policy achieved the aim of stimulating economy as estimated or not. Besides, by observing the US economy, the economy statistics, which started from QE1, QE2, till nowadays, QE3, would be compared with the statistics, which existed before Subprime mortgage crisis, to see if economy had improved obviously.
