In a new effort to address America's economic difficulties, the Federal Reserve, the country's central bank has said it will inject 600 billion dollars into the economy by the middle of next year. It is the bank's second attempt to generate growth in this way. The Federal Reserve will create new money and use it to buy government bonds in the financial market. The policy is known as “quantative easing” because it increases the quantity of money held by the banks. The aim is to reduce long term interest rates and stimulate more spending against the background of a sluggish economic recovery. But critics say risks causing sharply higher inflation and unsustainable increase in asset prices might threaten financial stability in the future.