Fed sticks to QE3 plan, says inflation has picked up slightly

Fed sticks to QE3 plan, says inflation has picked up slightly

The Fed decision maintains its third-round of asset purchases, known as quantitative easing or QE3, unveiled in September, that consists of $40 billion of mortgage-backed securities. The Fed is also buying $45 billion of Treasurys offset by sales of shorter-term securities under its Operation Twist program launched in September 2011.

The Fed believes these purchases put downward pressure on longer-term interest rates and ease financial conditions to support growth.