Federal Reserve 'Twists' again for extra six months

The US Federal Reserve will continue "Operation Twist", its intervention in the credit markets, to push down long-term interest rates for an extra six months.

The central bank cited slowing job growth in the world's largest economy to justify continuing purchases of long-term, US government debt.

The decision stopped short of some traders' hopes that the Fed might pump new money into the economy; instead the central bank will simply reinvest proceeds from previous, short-term bond purchases.

It is the rates on long-term, government debt that most affects the real economy, since this affects mortgage rates and the interest rate on business loans.

Operation Twist had been due to expire at the end of this month.