This is the fourth post in our series of blogs on the Eurozone crisis. Again, thanks to Troy Warwick for analyst coverage.
Amidst the worsening euro crisis, investors have expressed worry in the Federal Reserve’s decision to increase their Maturity Extension Program—also known as “Operation Twist.”
The FOMC announced yesterday that the new phase of Operation Twist, which is designed to lower interest rates on Treasuries and spur to the economy. The Fed plans on selling $267 billion in shorter-term securities while buying securities with six- to 30-year maturities. This should be completed by the end of 2012.