Operation Twist begins: Fed to sell $400 billion of short-term debt, buy $400 billion of long-term debt; Dow off 220

Joe Weisenthal Business Insider 9/21/2011

The eagerly awaited Fed announcement is out.

As the economy has been weakening, everyone was wondering whether Bernanke & Co. would juice the economy with more stimulus.

Well we didn’t get another round of quantitative easing, what we got instead is what people have referred to as “Operation Twist.”

[…]

QE2 risks currency wars and the end of dollar hegemony

As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.

Ambrose Evans-Pritchard Telegraph [UK] 01 Nov 2010

The Fed’s […]

Investors buy £2bn worth of government bonds

• Pension funds and insurance companies bid nearly twice the amount of 30-year gilts • Imminent auction of five-year gilt more important indicator of fallout from pound’s weakness

Nick Fletcher and Elena Moya Guardian [UK] 2 March 2010

Investors snapped up £2bn worth of government bonds today, despite fears that UK gilt issues could come […]