More Bailouts from Fed This Week
September 19th, 2011Via: CNBC:
The Fed in the week ahead is widely expected to pull the trigger on a new easing program, as the European debt crisis continues to boil.
…
Market expectations are high that the Fed will announce a new program — dubbed “operation twist” — at the end of its two-day meeting Wednesday.
“Twist” is different than the much larger scale “QE2” quantitative easing program which involved the purchase of $600 billion in Treasury securities. Fed watchers expect this program to raise the duration of the securities the Fed holds, not the amount. The program, in theory, could reduce long-term interest rates as the Fed buys more securities in the middle and longer end of the yield curve.
