Interest rates will remain low though 2012

News email from Los Angeles Times, 6/20/12.  "Fed extends 'Twist' program to drive rates lower"

Interest rates will stay this small

Not quite this low

"The Federal Reserve is extending a program intended to further lower long-term interest rates, noting hiring has weakened, consumer spending is rising more slowly and the economy needs more support.

The Fed will 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." 

Updated full story see Los Angeles Times/Business, "Federal Reserve extends Operation Twist until end of 2012," includes embedded Associated Press video of Federal Chairman Ben S. Bernanke's report, 59 seconds.

Kathy Meeh