Fed sticking with QE2 despite GOP criticism

The Federal Reserve is sticking with its controversial "quantitative easing" plan to help boost the slow-growing economy, the Federal Open Markets Committee announced Wednesday.

The news comes after weeks of criticism from a range of high-ranking congressional Republicans that the policy, known as "QE2," will lead to high inflation. The decision even pushed some lawmakers, such as Rep. Mike Pence (R-Ind.) and House Budget Committee Chairman Paul Ryan (R-Wis.), to back legislation that would eliminate the Fed's dual mandate of maximizing employment and controlling inflation. Instead, the bills would have the central bank focus exclusively on price controls.

In a unanimous decision, the committee is opting to stick with the original plan, which has the Fed buying back $600 billion of long-term Treasury bonds over a period of several months, ending in July.

"The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability," the committee said in a statement.

In addition, the Fed is keeping its target range for the federal funds rate near zero percent, and reiterated its stance that economic conditions will likely warrant those "exceptionally low levels" be maintained for "an extended period."

The committee's comments echoed those recently offered by Fed Chairman Ben Bernanke.

Specifically, the committee sees the economy continuing to recover, but at too slow of a rate to significantly bring down unemployment. Spending in both businesses and households are growing, but employers are still reluctant to bring on new employees, the committee said.