Fed's "Operation Twist" has only minor effects: Fisher

The Fed last week decided to extend through the end of the year a bond maturity-extension program called Operation Twist, in which the central bank replaces short-term debt it holds with longer-term securities. Operation Twist had been due to end this week.

"My suspicion is Operation Twist is having a very minor effect and I have argued that the benefits do not exceed the costs; the costs exceed the benefits," Dallas Federal Reserve Bank President Richard Fisher told Fox Business Network, according to a transcript provided by Fox. "And that's why I personally didn't support the program. But I was in a minority."

The U.S. central bank opted not to embark on a new program of outright bond buying, which would involve large-scale purchases of securities.

Fisher said he would oppose such a program.

"I would argue against it unless something comes up that I don't understand," Fisher said, according to the transcript

(Reporting by Ann Saphir; Editing by Jackie Frank)