Operation Twist is a go, albeit with a small twist on the twist. The Fed's announcement today that it will act to extend the average maturity of its Treasury holdings, by buying $400bn of securities that mature in more than six years and selling an equal amount of its existing holdings that mature between three months and three years from now, is a little larger than we expected. Nevertheless, we still expect it to have only a limited downward impact on longer-term interest rates and the impact on the wider economy will be even more modest.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services