Republican presidential candidate Mitt Romney charged that the Federal Reserve's latest action proves President Obama's economic policies are not working.
Federal Reserve Chairman Ben Bernanke announced plans to spend $40 billion a month to help boost the weak economy, Thursday.
"What Bernanke's doing is saying that what the president's saying is wrong," Romney told ABC News. "The president's saying the economy's making progress, coming back. Bernanke's saying, 'No, it's not. I gotta print more money.' I don't think what Bernanke is doing is gonna-- get the economy going."
The Fed announced the plans to buy mortgaged-backed securities. Bernanke said he'll stick with that plan until the job market shows substantial improvement.
He said he hopes it will make it cheaper for people to borrow and spend.
Meanwhile, stocks spiked higher on the news Thursday, but so did gold because investors are concerned the move could boost inflation.
The Fed's actions, announced after a two-day meeting, point to how sluggish the economy remains.
Paul Ashworth of Capital Economics said he doubts the new plan will be enough to get the economy on the right track.
"It's only a matter of time before speculation begins as to when the Fed will raise its purchases from $40 billion a month," he said.
The spending to buy mortgage bonds will continue as long as necessary to make home buying more affordable, according to a Federal Reserve statement.
The Fed also extended a plan to keep short-term interest rates at record low levels through mid-2015.
Bernanke also announced a lower outlook for growth this year. Growth is expected to be no stronger than 2 percent this year, down from the 2.4 percent forecast in June.