Definition of Operation Twist

Operation Twist, or 'Twist', is a policy by which the Federal Reserve sells short-term government bonds and buys long-dated Treasuries, in an effort to push down long-term interest rates and therefore boost the economy.

It is a form of monetary easing, but unlike quantitative easing, it does not expand the Fed's balance sheet, making it a less aggressive form of easing. The Fed first approved Operation Twist in September 2011, and extended the programme again in June 2012. [1]


Article: US Fed opts to extend Operation Twist (June 2012)

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