Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Time for the Fed to Twist and Shout Again
WSJ ^ | 06/19/12 | NICHOLAS HASTINGS

Posted on 06/19/2012 6:11:41 AM PDT by TigerLikesRooster

Time for the Fed to Twist and Shout Again

By NICHOLAS HASTINGS

The U.S. Federal Reserve is likely to hang on to its real monetary ammunition for now.

Uncertainty over global growth, the continued debt threat to the euro and the so-called "fiscal cliff" that faces the U.S. all mean that the central bank will likely reserve a third dose of quantitative easing in case it is needed later on.

Instead, the Fed is likely to use its meeting this week to counter the recent slowdown in the U.S. economy with an extension of Operation Twist--a system of selling short-term treasury debt in favor of longer-term bonds and helping to flatten the yield curve--as well as claims that interest rates won't rise as soon as expected.

Thus a (operation) twist and a (interest rate) shout.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: eu; fed; qe3; treasury

1 posted on 06/19/2012 6:11:53 AM PDT by TigerLikesRooster
[ Post Reply | Private Reply | View Replies]

To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 06/19/2012 6:16:39 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson