operation twist

Fed to Launch New Bond Buying Program to Ease Fiscal Cliff Fears

With a nervous eye on the "fiscal cliff," the Federal Reserve is expected this week to announce a new bond-buying plan intended to further reduce long-term interest rates and encourage borrowing. If it succeeds, it might soften the blow from tax increases and spending cuts that will kick in in January if Congress can't reach a budget deal.

Economists Mixed on Fed's 'Operation Twist'

As Ben Bernanke pulled a trick from the 1960s Fed handbook to twist down long-term interest rates, experts are mixed on how it will affect the U.S. economy. Wall Street certainly reacted negatively to the news. The Dow fell more than 280 points.