FOMC Statement, Federal Fund Rate at 0.25%, Extending “Operation Twist” - 21.6.2012

The Federal Reserve in the Federal Open Market Committee Statement announced its decision to maintain the federal funds rate at 0 to 0.25 per cent. Furthermore, the committee decided to extend the “Operation Twist” by $267 billion by stating that “The Committee also decided to continue through the end of the year its program to extend the average maturity of its holdings of securities” having an objective to lower long-term interest rates. Lastly, the committee maintained the same policy on the quantitative easing program, while stating that is ready to take further action to promote economic recovery and sustained improvement in labor market conditions in context of price stability. The dollar index was very volatile during the reading of the FOMC statement, however afterwards it rose slightly and at the moment is trading at 81.65.