Operation Twist?

  by Tyler Curtis

by Jesse Anderson, CFA

This is not the type of Twist Chubby Checkerwould enjoy. This twist is focused on interest rates and flattening the yield curve.

The economy is still in a fragile state. Everyone is looking for the answer to provide the necessary spark for improvement. The president created a jobs plan and the Federal Reserve announced Operation Twist today.

Ultimately, the goal of the program is to move long-term interest rates lower. With lower rates across the yield curve, borrowing funds should be more attractive. This should spark investment and a move to riskier assets.

Read more: http://community.nasdaq.com/News/2011-09/operation-twist.aspx?storyid=95627#ixzz1bu4T4X9n

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