Fed extends "Twist" program to drive rates lower

The Federal Reserve is extending a program designed to drive down long-term interest rates to spur borrowing and spending.

The Federal Reserve is extending a program designed to drive down long-term interest rates to spur borrowing and spending.

WASHINGTON  — The Federal Reserve is extending a program designed to drive down long-term U.S. interest rates to spur borrowing and spending. Hiring has weakened, and the U.S. economy needs more support, the Fed said Wednesday. It reiterated its plan to keep short-term rates at record lows until at least late 2014.

On September 21, 2011 in a Federal Reserve Press Release the Fed announced "Operation Twist" purportedly to drive down long-term rates and drive up short-term rates.

WASHINGTON -- Acting amid increasing fears about the global economic slowdown, Federal Reserve policymakers announced Wednesday they were extending a program intended to lower long-term interest rates, but they opted not to take more forceful action.

Fed extends Twist program with $267B more to drive long-term rates down, says US hiring weaker.

WASHINGTON — With a nervous eye on the “fiscal cliff,” the Federal Reserve is expected this week to announce a new bond-buying plan to support the U.S. economy. The goal would be to further reduce long-term interest rates and encourage borrowing by companies and individuals. If it succeeds, the Fed might at least soften the blow from tax increases and spending cuts that will kick in in January if Congress can’t reach a budget deal. But the Fed’s actions wouldn’t rescue the economy.

The Federal Reserve is extending a program intended to spur lending to consumers and small businesses at lower rates, but will not expand the types of loans made.