The Fed Maintain Stimulus 85 Billion per Month

The Federal Reserve decided to keep the purchase of assets in the form of debt securities with an average value of U.S. $ 85 billion per month. This decision was taken after U.S. economic growth stagnated due to the major factors that can not be avoided, including inclement weather.

"The growth in economic activity faltered in recent months, largely due to bad weather and other transition factors. Budget households and businesses recorded an increase. Addition, the housing sector also showed considerable improvement," the conclusion of a two-day meeting of the Federal Open Market Committee in Washington.

Fed Chairman Ben S. Bernanke is already exerting all his power to buy mortgage-based debt in an effort to end a long period of unemployment at 7.5% above the level that has been going on for four years. The Fed's move is also intended to hoist the economic growth shrank 0.1% in the fourth quarter of 2012 last year.

"There is no indication whatsoever as to the Fed's policy decisions at this time. Economic growth slowed and inflation rates were below expectations. Data that supports the Fed's decision is data dependent, all of which suggest the Fed continue the policy easing," said Mark Vitner , senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina.

After the Fed's announcement, the yield on U.S. Treasuries fell 10 years tenor 0.01 percentage points to 1.99% in New York after touching its highest level in nine months. Just for additional information, the level of U.S. debt yields are up from 1.72% since the Fed announced the purchase of bonds on Sept. 13.