Federal Reserve Board: Operation Twist, "Significant Downside Risk"' to the Economy

Nothing unexpected in today's Fed release. It was Operation Twist, with about $400 billion in Treasuries being rolled into the longer end of the curve from 6 to 30 years.

The Fed will be rolling over its Agency debt as it matured.

There was no decrease in the payment on Reserves as some had expected.

There is no additional expansion of the Balance Sheet which would be called QE3.

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