{"id":23993,"date":"2011-09-21T14:34:00","date_gmt":"2011-09-21T18:34:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/09\/21\/fomc-announces-400b-twist-to-qe-program\/"},"modified":"2011-09-21T14:34:00","modified_gmt":"2011-09-21T18:34:00","slug":"fomc-announces-400b-twist-to-qe-program","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/09\/21\/fomc-announces-400b-twist-to-qe-program\/","title":{"rendered":"FOMC Announces $400B &#8220;Twist&#8221; to QE Program"},"content":{"rendered":"<p><span><span><span>The\u00a0<a href=\"http:\/\/www.federalreserve.gov\/\" target=\"_blank\">US Federal Open Market Committee<\/a>\u00a0(FOMC)\u00a0held the fed funds rate unchanged at 0 to 0.25 percent, and announced a refocus of its quantitative easing program (the so-called &#39;twist&#39;). \u00a0The Fed\u00a0<a href=\"http:\/\/federalreserve.gov\/newsevents\/press\/monetary\/20110921a.htm\">announced<\/a>: &quot;The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less. This program should put downward pressure on longer-term interest ratesand help make broader financial conditions more accommodative.&quot;<\/span><\/span> <\/p>\n<div><span><span><\/span><\/span><br \/> <a name=\"more\"><\/a><\/div>\n<div><span><span>The Fed previously held\u00a0monetary policy settings\u00a0<a href=\"http:\/\/www.centralbanknews.info\/2011\/08\/us-fomc-holds-fed-funds-rate-at-0-to.html\">unchanged<\/a>\u00a0at its August meeting, where it committed to low rates until 2013. \u00a0The US reported inflation of 3.8% in August, and 3.6% in both July, June and May, up from 3.2% in April, as high commodity prices caused a broader increase in prices. \u00a0Meanwhile the US economy grew 1.3% in Q2, compared to 0.4% in Q1 this year. \u00a0<\/span><\/span><\/div>\n<div><span><span><br \/> <\/span><\/span><\/div>\n<div><span><span>The Fed also announced it would &quot;reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.&quot;<\/p>\n<p><a href=\"http:\/\/www.centralbanknews.info\/\" target=\"_blank\">www.CentralBankNews.info<\/a><\/span><\/span><\/div>\n<p><\/span> <\/p>\n<div><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/blogger.googleusercontent.com\/tracker\/8290544642025682538-4525082355064635281?l=www.centralbanknews.info\" alt=\"\" \/><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0US Federal Open Market Committee\u00a0(FOMC)\u00a0held the fed funds rate unchanged at 0 to 0.25 percent, and announced a refocus of its quantitative easing program (the so-called &#39;twist&#39;). \u00a0The Fed\u00a0announced: &quot;The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2011\/09\/21\/fomc-announces-400b-twist-to-qe-program\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;FOMC Announces $400B &#8220;Twist&#8221; to QE Program&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-23993","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/23993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=23993"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/23993\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=23993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=23993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=23993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}