WASHINGTON D.C. - The Federal Reserve will extend a program intended to keep lower long-term interest rates.
The Fed Wednesday decided to continue Operation Twist through the end of the year. The Fed has been selling $400 billion in short-term Treasurys since September and buying longer-term Treasurys. It says it will shift another $267 billion through December.
The Fed wants to spur more borrowing, spending and growth, but economist say extending Operation Twist might not provide much benefit. Long-term U.S. rates have already touched record lows, and economists say businesses and consumers who aren't borrowing now might not do so if rates slipped slightly more.
Fed officials reiterate their plan to keep short-term rates at record lows until at least late 2014.