The Federal Reserve has announced it intends to extend the stimulus program known as “Operation Twist” through the end of the year. The Fed is slated to purchase $267 billion in Treasury securities with maturities from 6 to 20 years in an effort to boost growth and lower interest rates. The program was originally scheduled to end this month.
“The Committee is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” the Fed said in a statement. All but one Fed official voted in favor of continuing the policy. Since January the central bank has stated it will freeze interest rates at “extremely low levels” through late 2014.
