09/21/2011 10:25 AM

Fed likely to push for 'Operation Twist' to help economy rebound

By: News 14 Carolina Web Staff

Fed Chairman Ben Bernanke
Fed Chairman Ben Bernanke
WASHINGTON – The Federal Reserve is expected to look back 50 years for answers on how fix the economy.

Economists say the Fed will likely push for Operation Twist, which involves shifting money in its $1.7 trillion portfolio from short- to long-term securities.

That could reduce rates on mortgages and other business loans but some Republicans believe it could trigger higher inflation.

The Fed expects the economy to continue to struggle for at least two more years.