Fed announces new steps to boost US economy

The new practice aimed to make monetary policy "more transparent and predictable to the public," Federal Reserve Chairman Ben Bernanke said at a press conference after the FOMC meeting.

US economic activity and employment have continued to expand at a "moderate pace" in recent months, despite weather-related disruptions. Although the unemployment rate has declined somewhat since the summer, it remains elevated, said the Fed.

Household spending has continued to advance, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed, it noted.

"The Committee (FOMC) remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," added the Fed.

The central bank on Wednesday slightly lowered its outlook for US economic growth next year, predicting that US economy would expand by 2.3 percent to 3.0 percent in 2013, as against the range of 2.5 percent to 3.0 percent projected in September.

Fed policymakers held that the nation's long-term inflation expectations have remained stable and below the Fed's 2-percent objective.