- If goal is to maintain current stimulus, Fed ought replace Operation Twist by less than one-for-one basis.
- Outright purchases would likely have more impact on inflation than Operation Twist purchases.
- Market's could mistakenly interpret Fed's current mid-2015 rate guidance as signal economy is expected to be weak until then.
Reaction details (12:59)
- No movement seen across asset classes following these headlines as they are in-fitting with recent remarks made by Bullard.
Analysis details (12:59)
- Fed's Bullard is non-voter, however will become a voting member on the FOMC in 2013.
03 Dec 2012 - 12:55 - Fixed Income - Source: Newswires
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