FED CONSIDERING 3 OPTIONS FOR NEXT ROUND OF EASING

The WSJ's ace Fed reporter Jon Hilsenrath says the Fed is considering 3 options for further easing at its two-day meeting September 20-21.
They are:

So called "operation twist." Extending the duration of the Fed's bond portfolio by selling the short-end and buying more long-dated bonds, to push the end of the curve even lower.

Another possibility is to reduce the interest on excess reserves that banks hold with the Fed as a spur to hold fewer reserves and lend more money.

Finally, the Fed might use even clearer language to emphasize that it will hold rates very low for a long time….

Read more at http://online.wsj.com/article/SB10001424053111904103404576556943051259236.html?mod=googlenews_wsj