Not just might QE3 get announced Thursday, says RBC, but Operation Twist could also be ended. "Twist has always been problematic from a policy perspective, and those issues will become much more intense once QE starts," referring to the burgeoning among of reserves being held at the Fed. "In addition, stopping Twist would allow the Fed to announce a larger QE." The Fed is buying $45B/month of long-dated Treasurys under Operation Twist.
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