Goldman's economists predict Operation Twist will produce $300B-$400B worth of Fed purchases of...

|By:, SA News Editor
Goldman's economists predict Operation Twist will produce $300B-$400B worth of Fed purchases of 10-year-equivalent debt, and expects these purchases to be financed by the sale of $300B of Treasury notes and bonds due 2014 or earlier. Unlike Nomura, Goldman also thinks (but isn't certain) the Fed will cut rates on excess bank reserves.