The Federal Reserve released its policy statement as the closing bell was ringing in the grain pits. The statement emphasized the significant downside risk that remains in the U.S. economy. As for policy, the Fed will implement Operation Twist as expected, which means that it will sell $400 billion in short-term bonds that it currently owns between now and the end of next June, while reinvesting those funds in longer-term bonds. The objective is to "twist" the yield curve to pressure long-term interest rates lower to stimulate the mortgage market.
As seen on Farm Futures Daily email blast
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