FOMC conference on Thursday revealed a plan to expand the holdings of long-term securities with open-ended purchase of $40 billion of mortgage debt a month and stabilize the federal funds rate near to zero. The sketched fed rate is expected to be maintained by mid-2015. Fed’s statement clearly indicates the continuity of monetary easing till the economy recovers, more specifically, until the employment growth is satisfactory. The much awaited conference has finally eased the pressure and correlated the monetary policy with economic growth, opined market analysts.

Fed Chairman, Ben S. Bernanke is strikingly enlarging the supply of unconventional tools to cope up with the ongoing unemployment which is constantly above 8 percent since February 2009. To deal with the situation, “grave concern,” as per Bernanke, the third round of easing measure shall have no end date unlike previous two round of quantitative easing.

At this point of time, Fed has very strong grounds for executing third round of quantitative easing, which has already started to take toll on US dollar and gold, simultaneously. Spot gold has risen 0.5 percent to $1,776.07 an ounce and oil futures in New York gained 1.2 percent to $99.51, ultimately rocketed by U.S stimulus exercise. Similarly, European equity futures and Asian shares have also gained over the Fed’s plan of monetary measures.