FOMC extends operation twist through end of the year, growth forecast revised downward21 June, 2012, 2:07. Posted by Zarathustra
The Federal Reserve FOMC decided to extend the operation twist programme through to the end of the year. The FOMC will continue to purchase Treasury securities of 6-30 years of maturities while selling securities of maturities less than 3 years. Besides that, the Fed has offered no new stimulus.
Meanwhile, the growth forecast is revised downward. The 2012 real GDP growth forecast is revised down from 2.4-2.9% to 1.9-2.4%. Unemployment rate forecast is revised upward from 7.8-8.0% to 8.0-8.2%. PCE inflation forecast is revised downward from 1.9-2.0% to 1.2-1.7%.
There will be a press conference later today by Ben Bernanke, and it can be watched here.