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SALE Fed Launches $400B ‘Operation Twist’ Alex Brandon / AP Photo

Fed Launches $400B ‘Operation Twist’

You can’t beat these prices. The Federal Reserve announced a plan to stimulate growth, Wednesday. By essentially selling $400 billion in short-term Treasuries and then buying the same amount in long-term Treasuries, they hope to drive down rates. The move will shift money into riskier investments and push investors to take lower returns on other investments. This comes just as Republicans asked that there be no new actions. A similar plan was set in to motion in 1961 under the Kennedy Administration as an effort by the Federal Reserve and Treasury Department to work together. It’s named after the popular ‘60s dance, “the twist.”

September 21, 2011 3:57 PM