Federal Interest Rates Lowered.

On Wednesday morning, in a move that would prove to be good news to consumers, the Federal Reserve announced that it will be extending Operation Twist in order to lower the long-term interest rates for millions of consumers and businesses. The Federal Reserve said it will continue shifting its portfolio from short to long-term securities through the end of 2012. The Fed also says it plans to buy $267 billion in longer-term Treasury securities with maturities of 6 years to 30 years and will sell or redeem an equal amount of securities with maturities of 3 years or less. The announcement was bad news for the stock market, with stocks taking a dive after the announcement, but turned by mid-afternoon.