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 […]