The Federal Reserve announced Operation Twist at a scale of $400 billion by the end of June 2012. This means no additional dollar printing – no QE3. They also fell short from announcing more measures such as lower rates on excessive rates. The initial reaction is a stronger dollar. EUR/USD is significantly down but partially rebounds. The market is still digesting. This might change later, although the probability is not very high. Yet again, there were three dissenters from the decision. The statement also included a pledge to but mortgage based securities. The impact of this move is uncertain. (full story)