The Federal Reserve more than doubled the rate of its net bond buying and set guidelines for keeping interest rates near zero that explicitly tolerate short-term inflation above its 2% target.

As expected, the central bank will create $85 billion a month to buy mortgage-backed securities and Treasury bonds, up from its current pace of $40 billion in so-called quantitative easing.

While the Fed can adjust its bond purchases based on economic conditions, $85 billion a month adds up to $1.02 trillion over 2013, adding to the more than $2 trillion in assets bought since the start of the financial crisis.