This conversation is closed.
Is operation Twist effective.
The Fed is in the process of buying and selling Treasury Securities in what's being called "Operation Twist." The Fed would liquidate some of their shorter term holdings, maybe out to three years in maturity, and then buy in the longer end, hoping to bring long-term rates down. The move wouldn't put more money in the system, making it an "easier sell for Ben Bernanke" to those in favor of no more stimulus.
On the downside, long-term rates are negligible and that fact has resulted in literally zero job creation.
This is a 267 Billion dollar effort by the FOMC begining 9 March 2013.
Do you believe that monitary policy is the answer to the US ills? Why is the fed the front runner in attempting to resolve the US economic issues?
If you were in charge what would you suggest?