Boston Fed: Let's Twist Again, Like We Did Last Summer

Here it comes…

From Bloomberg:

Continuing so-called Operation Twist beyond this month would help the Fed meet its congressional mandate to ensure full employment, Rosengren said in an interview with Bloomberg News before a Labor Department report that unemployment in May rose to 8.2 percent.

“That would have the impact of helping to reduce longer- term interest rates without expanding our balance sheet,” Rosengren said yesterday. “If you were looking for something that would promote growth but didn’t have an impact on our balance sheet, then certainly extending the maturity extension program would be a viable way forward.”

Duh.

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