Fed’s ‘Operation Twist’ Will Probably Fail, Roach Tells CNBC
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The Federal Reserve’s “Operation Twist” to curb long-term borrowing costs will probably fail and the U.S. is “on the brink” of relapsing into a recession, said Stephen Roach, non-executive chairman of Morgan Stanley Asia.
“We obviously had a wrenching crisis three years ago,” Roach said in an interview on CNBC today. “QE1 was important in putting a floor under the financial chaos that was unfolding. QE2 failed. Operation Twist will probably fail. QE3 will fail.”