Treasury Operation Twist Trend 2026

The Federal Reserve’s program involves selling short-term notes while purchasing long-term bonds. This strategy aims to lower long-term interest rates, making borrowing cheaper for mortgages and business investments. Primarily used when short-term rates are near zero, it benefits homebuyers, corporations, and the broader economy by stimulating spending. Investors in long-term securities also see price appreciation, while the central bank uses it to manage economic growth without altering its policy rate.