Fed Extends Twist, Signals Concerns

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.

The Fed came out blazing today, not that it will matter one iota to jobs (because it won't).

By Investment U: By Jason Jenkins On Wednesday, the Federal Reserve announced it would proceed with a new $400-billion program that will tilt its $2.85-trillion balance sheet more to longer-term securities by selling shorter-term notes and using those funds to purchase longer-dated Treasuries. It’s rationale?

By Josh Cohen: Despite the predictions of two major investment banks about which I wrote yesterday, the FED opted not to launch QE3 today. While the FED did not announce QE3, it did elect the extend Operation Twist through the end of this year. I believe, however, that the extension of Twist will not be of much help to the real economy.

By Tim Iacono: I'll have more about yesterday's developments at the Federal Reserve after the central bank releases its updated economic forecasts and Fed Chief Ben Bernanke conducts another one of his quarterly press conferences.

WASHINGTON  — The Federal Reserve is extending a program intended to further lower long-term interest rates, noting hiring has weakened, consumer spending is rising more slowly and the economy needs more support. The Fed will continue Operation Twist through the end of the year.

The Federal Reserve is extending a program intended to further lower long-term interest rates, noting hiring has weakened, consumer spending is rising more slowly and the economy needs more support.