Fed extends 'Operation Twist,' says hiring has slowed

Story by MSNBC

Written by Patrick Rizzo

Confronted with a stumbling U.S. recovery and a financial crisis in Europe, the Federal Reserve decided Wednesday that it would extend a program known as "Operation Twist" aimed at pushing down long-term interest rates and boosting the economy.

The Fed said in a statement that while the economy has been expanding modestly throughout the year, growth in employment has slowed recently and unemployment remains elevated.

It said it expects economic growth to continue to grow moderately over coming quarters and then to pick up gradually. "Consequently, the Committee anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate," the statement said.

The Fed also voted to keep interest rates unchanged at historic lows at least until the end of 2014.
http://economywatch.msnbc.msn.com/_news/2012/06/20/12319683-fed-extends-operation-twist-says-hiring-has-slowed?lite