How do you bring an economy from the brink of disaster back to life? Central banks across the world are trying various measures in order to revive their economies post the financial crisis and the subsequent recession. The US Federal Reserve has now announced its own unorthodox measure to help revive the economy. Fed Chairman, Ben Bernanke announced that interest rates would be kept at near zero levels until unemployment falls to at least 6.5%.

The Fed expects rates to hold steady until unemployment figures improve. This is as long as inflation doesn't break the 2.5% barrier. The central bank also replaced an expiring stimulus programme with a fresh round of Treasury purchases. While earlier goals were more timeline driven, these action oriented goals will make monetary policy more transparent and predictable to the public. But, despite all these efforts, GDP growth in the US remains lukewarm. The upcoming fiscal cliff is also a matter of concern. Well, we just hope that new job creation will provide some respite to this ravaged economy.