Fed Extends Operation Twist Program

The Federal Reserve reported they will extend the Operation Twist program through the rest of the year. The goal is to put pressure on long-term interest rates to promote business investment and stimulate the housing market. The hope is that businesses will take advantage of the low rates to borrow more to grow their business and hire new employees. The Fed also commented that rates will remain “exceptionally low” through 2014. Below is a video clip of Fed Chairman, Ben Bernanke from Bloomberg Businessweek.