The FOMC released its statement, and it contains no changes in policy: Operation Twist will continue as planned, and the conditional commitment to keep interest rates low up to mid 2013 remained in place. EUR/USD dropped before the release to 1.3775, within levels seen during the day. Earlier in the day it climbed and challenged resistance at 1.3838. It extends these drops after the release of the statement. In the last meeting, Operation Twist was announced. The idea was to actively sell short term bonds and buy long term ones, in order to lower long term interest rates and encourage spending. But this was more of a ... (full story)