ST ANDREWS (Reuters) - The head of the Federal Reserve Bank of Dallas on Tuesday expressed serious doubts about the efficacy of so-called "Operation Twist," which is the central bank's latest step to boost the struggling economic recovery.
"I am extremely suspect about the efficacy of Operation Twist," Richard Fisher, president of the regional Fed bank, said at St. Andrews University. He does not have a vote on Fed policy this year.
Operation Twist, which is set to expire this month, replaces $400 billion of short-term securities in the Fed's portfolio with longer-term ones to lower longer-term rates and stimulate the economy.
Reporting by Philip Baillie; Writing by Jonathan Spicer; Editing by Chizu Nomiyama