The Federal Open Market Committee (FOMC) ended its two-day policy meeting Wednesday announcing an extension of Operation Twist, the policy of swapping short-term Treasury securities in its reserve for bonds with a longer maturity.
The program, set to expire June 30, will now continue until year's end. During the next few months the Fed plans to buy some $267 billion worth of bonds.
In a press conference after the meeting, Federal Reserve Chairman Ben Bernanke indicated the Fed sees weaker times ahead. Its outlook has changed, and not for the better.
It was not what investors wanted or needed to hear.