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The federal reserve said that will buy federal bonds for the value of $600Bn, something higher than the value expected by markets. The purchases will be made at a rate of $75Bn monthly until the second quarter of the next year.

The open committee of the Central Bank has taken the decision of inject other $600Bn to boost American economy, that a sluggish growth during the last months. During the third quarter of the year, the GDP grew by 2%.

For that reason, the Federal Reserve, will use this money to buy federal bonds until the end of the second quarter of the next year (June 2011), what means a monthly expenditure by $75Bn.

At the same time, the Federal Reserve of New York has also announced that will reinvest interests from already bought federal bonds, so the total volume would reach between $850Bn and $900Bn. Adding this amount, monthly debt purchases would reach a maximum of $112,5Bn.

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The federal reserve, as analysts forecasted, recognized that early will be a good time to use the money machine and ad more dollars in the system.

This is the conclusion that reached several members of the Open Market Committee of the Federal Reserve in his last meeting on September 21^st. According some data released this week.

In this meeting the civil servants coincided in that insert more money as measure to stimulate the economy of the United States will be “early” appropriate. This injection will arrive “earlier than the expected”.

There is a consensus in the Federal Reserve about the idea that the injection of dollars in the system can begin if the economic situation requires so.

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Ben Bernanke, has planned this month the actions of the Federal reserve for if the economy of the United States brakes his recovery.

Ben Bernanke announced his next steps during the central banks governors meeting,hold in Jackson Hole (Wisconsin),just the day when the United States revised the GDP growth during the second quarter, than has been lower than the expected.

The GDP of the United States grew now by 1,6%, in front of the 2,4% considered in a beginning. However,the reduction was lower than the expected by analysts, that foreasted a GDP growth by 1,4% .

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The Federal Reserve repeated the same speech from last months when keeping interest rates in a historical minimum, between the 0% and the 0.25%, and return to show that is willing to keep it during a “period of time”. The Federal Reserve also noted that in the last month the economy has been getting stronger.

The Federal Reserve hasn’t changed any coma of his habitual speech, at the end of the meeting began yesterday, the Federal reserve decided to keep the price of money steady in his historical minimum one more month. Since December of 2008, the interest rates of the United States remained between 0% and 0.25%.

Furthermore, the Federal Reserve reiterated that interest rates will remain in a low level “during a period of time”, repeating the same words that some are voices are demanding to be suppressed from communicates. However, the members of the open committee of the Federal Reserve are defending that the forecasts point that these measures are necessary to help promote the economic and labor recovery, so as price stabilization.

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Both the Federal Reserve and the Bank of Japan have decided to postpone a increase of interest rates. The answer in the currency market is a brake for the dollar and the Yen, and a higher increase for the most punished currency last months: the pound.

The activity began past Wednesday when the meeting of the Federal Reserve ended. The Federal reserve did not change his speech, and although the weak signals of recovery, is still likely to keep interest rates between 0% and 0.25% during a long period of time.

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Thomas Hoenig, president of the Federal Reserve in Kansas and one of the most pro-increase of interest rates in the Federal Reserve, launched a warning to the market when stating that a long period with ultra low interest rates invites to the speculation and is dangerous. The price of money in the Unites States is between 0% and 0,25% since December of 2008.

“When your interest rate is permanently at 0, you are inviting future problems. We know that the 0 isn’t sustainable…the market knows it”, stated Hoenig.

Furthermore, the regional president of the Federal Reserve, stated that the Central Bank of the United States must be ready to increase interest rates although having high unemployment rates.

Hoenig has been positioned as of the the falcons in the Federal Reserve. He appeared in the act of the last meeting of the Federal Reserve, released on February 17th ; asking for a important change on the Federal Reserve’s official message: instead of saying that the interest rates will be low “during a long period of time” say “at the moment”.

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The Chief economist from the Bank of America in New York, Mickey Levy, believes that the decision adopted by the Federal Reserve two days ago, when increasing the discount interest rate, shows that “the financial crisis ended, in great part”.

In declarations took by Bloomberg, Levy estimates that “it is time to normalize things”, after the Federal Reserve began to trim the interest rates when lending money to the banks in the beginning of the financial crisis at the end of 2007. The economist points that this movement “doesn’t represent too much, because any bank in a situation without crisis will go to the discount office if doesn’t have problems”.

On Thursday, the Federal Reserve increased for first time since June 2006 the discount interest rates given to the banks with need of liquidity to obtain short therm financement by an increase of 0.25% to the rate of 0.75%.

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The perspectives of keeping his job in the Federal Reserve by Ben Bernanke have been put into doubt last Friday, when the Obama administration was trying to ensure its power in the Senate.

The people against Ben Bernanke, some afraid of his reelection and some disagree with what the Fed done with the financial crisis, moved against him, enlarging the list of negative votes already revealed.

Democrat senators Barbara Boxer (California) and Russ Feingold (Wisconsin) said that will be against the reelection of Ben Bernanke, that should be before the January 31st.

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The federal reserve closed 2009 with record profits, $46100 million, that the central bank will refund to the treasure.

According the Washington Post , this is the highest profit obtained by the federal reserve in their 96 years of history. The entity presided by Ben Bernanke, surpassed the analyst’s forecasts from the Bank of America, Goldman Sachs and JP Morgan, and has made it thanks to the aggressive bond purchases last year. His previous record was of $34.600 million in 2007.

At the end of 2009, the Federal Reserve was controlling $1800 billion in debt from the US Government. This figure surpasses widely the $497000 million of 2008.

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The Federel reserve is still very worried about the evolvement of labor market and and the risks on a still weak economy of the emergency package withdrawal. Furthermore inside the Federal reserve of Ben Bernanke there is divergence of opinions about how will the pressure affect the inflation rate next months.

This way, the Federal reserve showed that although the last report this November, is worried about the unemployment rate. However the bankers of the Federal Reserve state that they will need more than a good report to confirm the evidence that the labor market is recovering.

The hottest discussion between the officers of the Federal Reserve was about the forecast on inflation rate. So, some members of Federal Reserve’s open committee see low risk on the increase of prices due to the low interest rate, although they recognize that it’s important ”to stay alert” in front of possible risks.

On the other side, some members of the Federal Reserve believe that the increase on prices experimented by some raw materials could boost the inflation, a situation that could lead to higher interest rates although further improvements on the labor market.

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