US Fed Announces $400 Bln "Operation Twist"（在线收听）

The US Federal Reserve has announced it will replace much of the short-term debt in its portfolio with longer-term treasuries.

Following a 2-day meeting, the US central bank has decided it will buy 400 billion dollars worth of bonds with maturities of 6 to 30 years, while at the same time, selling an equal amount of debt maturing in three years or less.

The Fed's move is designed to try to further reduce borrowing costs and keep the economy from dipping into another recession.

The Fed has also decided to hold interest rates at rock-bottom levels at least until the middle of 2013.

For more on the Fed's meetings, we had a chance earlier this morning to speak with Dr. Kevin Jacques, the Boynton D. Murch Chair of Finance at Baldwin-Wallace College in the US.