News Headline Summary

Fed's Bullard says replacing 'Operation Twist' with equal amount of new bond purchases would be more dovish than current policy

- 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.

Update details:

- Fed's Bullard is non-voter, however will become a voting member on the FOMC in 2013.

Reaction details:

- No movement seen across asset classes following these headlines as they are in-fitting with recent remarks made by Bullard.

Print 18:55, 03 Dec 2012 - Fed - Source: Newswires