QE3

The Federal Open Market Committee, said it was concerned that, without the action, “economic growth might not be strong enough to generate sustained improvement in labor-market conditions.” 

“A weak job market should concern every American,” Fed Chairman Ben Bernanke said at his press conference. 

In addition to bond purchases, the Fed said it intends to keep the benchmark short-term interest rate, known as the federal funds rate, at nearly zero until mid-2015. The prior guidance on the first rate increase had been late 2014. The guidance now extends well beyond end of Bernanke’s term in early 2014, although he could be appointed to another term by whoever is president. The central bank has kept the federal funds rate at nearly zero since December 2008. 

The Fed said it would keep low rates in place for a “considerable time,” even after the economic recovery strengthens.