Operation Twist 2: Twist HarderER
...or not so hard.
The Fed has committed another $267 billion to operation twist, expanding the original $400 billion commitment.
This comes in the wake of grim economic projections, including increasing unemployment projections by 0.2% and decreasing forecast growth 0.5% to 1.9-2.4% from 2.4-2.9%
With the ten year already frequently dipping below 1.6% and the 30 year already at historic lows, will dropping the rate more actually do anything? Has anyone been holding off buying something because interest rates were just too damn high?
I think the market was expecting more, especially considering the release of negative new forecasts.
Where will the fed, and our government, go from here? It sounded like Bernanke was all but begging for more stimulus spending.