Fed Lowers Interest Rates

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Good news for consumers, bad news for the stock market. The Federal Reserve announced Wednesday that it will be extending Operation Twist in order to lower the long-term interest rates for millions of consumers and businesses. The Fed said it will continue shifting its portfolio from short to long-term securities through the end of the year. The Fed says it plans to buy $267 billion in longer-term Treasury securities with maturities of 6 years to 30 years and will sell or redeem an equal amount of securities with maturities of 3 years or less. Stocks took a dive after the announcement, but turned mixed by mid-afternoon.