The initial results from the Fed's plan to buy $600 billion in Treasury bonds are encouraging, the president of the Federal Reserve Bank of Cleveland said Thursday.

Sandra Pianalto, speaking to business students at Case Western Reserve University, said inflation expectations are moving in the right direction since the Fed announcement two weeks ago.

"I voted to support additional asset purchases, and I am encouraged by the results so far," she said.

"For example, inflation expectations have moved closer to my long-term inflation objective just in anticipation of our announcement, and they have stayed that way."

Pianalto was the latest Fed leader who backed the plan to detail support for the move meant to invigorate the economy. Critics fear it could ignite inflation and lead to speculative buying on Wall Street.

On Wednesday, Fed Chairman Ben Bernanke went to Capitol Hill and defended the bond purchase plan. He told lawmakers the program could create 700,000 jobs over two years.

The Fed announced Nov. 3 that it would buy the bonds over eight months. The Fed hopes to make loans cheaper and get Americans to spend more in order to rejuvenate the economy and reduce unemployment.

Pianalto said she was focused on finding the "right policy actions to fulfill the dual mandate we were given by Congress of price stability and maximum employment."

"I think our policy action offers the right kind of insurance that Federal Reserve monetary policies will support the economic expansion while stabilizing inflation and inflation expectations consistent with our price stability mandate," she said.