-
Fed could build firepower for new Operation Twist: Harker
The U.S. Federal Reserve intends to shorten the duration of bonds it has on its balance sheet to build some firepower in case it needs to use it as a stimulus tool once again, Federal Reserve Bank of Philadelphia President Patrick Harker said on Tuesday. He made a reference to the Fed’s 2011 Operation Twist, in which the central bank sold shorter-dated Treasuries to buy longer-term paper in a bid to bring down interest rates and stimulate the economy, as a possible future option. “I think there’s a general consensus... that we do want to go shorter, to buy ourselves the option over time, if we ever had to ... (full story)