Skip to comments.Time for the Fed to Twist and Shout Again
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 ...