Fed's Warsh Needs to Launch Operation Twist, Academy's Tchir Says As the Federal Reserve grapples with rising inflation and economic uncertainty, one tool has been mentioned as a potential solution: Operation Twist.
Introduced in 1969 by then Fed Chairman Arthur Burns, Operation Twist aimed to lower long term interest rates while maintaining short term rates by selling short term bonds and buying longer term ones.
The Origins of Operation Twist Operation Twist is not a new concept; it has been used twice before – first in 1969 and again in 2011.