No Room For New Fed Twist Beyond Year End

English: James Bullard, president of the Federal Reserve Bank of St. Louis (Photo credit: Wikipedia)

“Twist has been extended through the end of the year, but we are running out of balance sheet,” James Bullard, president of the Federal Reserve Bank of St. Louis, told reporters at a briefing after a conference in London. "There is a limited amount of short-term Treasurys that we can sell and buy long-term Treasurys. So I don't think you can look at any more extension of Twist beyond the end of the year."

On June 20 the central bank expanded its so-called Operation Twist by $267 billion, meaning it will sell that amount of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire in June, will now run through the end of 2012. ... Continue to read.

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