Federal Reserve Extends Program Meant To Boost Economy, Says It’s Prepared To Do More

The Federal Reserve Open Markets Committee today decided to extend its program known as “Operation Twist,” after significant speculation that it would act in order to boost the moribund economy. Operation Twist, which was scheduled to end this month, “seeks to lower borrowing costs by extending the average maturity of the securities in the central bank’s portfolio.” The new round will involve $267 billion of monetary stimulus, and FOMC said that it will do more if events warrant. This move comes as Congressional conservatives have been saying that the central bank should be doing less to aid the economic recovery.