Tuesday'​s FOMC statement says, "Information received since the Federal Open Market Committee met in November confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment. Household spending is increasing at a moderate pace, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.... Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Longer-​term inflation expectations have remained stable, but measures of underlying inflation have continued to trend downward. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability.... To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings. In addition, the Committee intends to purchase $​600 billion of longer-​term Treasury securities by the end of the second quarter of 2011, a pace of about $​75 billion per month.... The Committee will maintain the target range for the federal funds rate at 0 to 1/​4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period."

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