A senior federal official has said that federal policies have helped bring down the borrowing costs without pushing for higher inflation in the country. It is estimated that the latest round of asset buying will be worth more than $600 billion.

John Williams, president of the San Francisco Federal Reserve Bank said that the federal policies will continue until it records a strong jobs gain and a reduction in unemployment level in the country. This means that the asset buying plans will continue in the coming year. Williams was speaking after delivering a lecture at the University of California, Irvine.

The earlier round of buying was worth $600 billion and its first round was about $1.7 trillion. The third round of quantitative easing began in September with $40 billion a month in mortgage-backed securities. The third package will be expanded if the jobs market does not improve significantly in the country.

Williams said, "The available evidence suggests they have been effective in stimulating growth without creating an undesirable rise in inflation. We are not seeing signs of rising inflation on the horizon." He added that the policies have not stimulated excessive risk-taking in the economy.