LITTLE ROCK - If Federal Reserve policymakers are going to replace the expiring "Operation Twist" purchases of long-term Treasury securities with outright Treasury purchases, and if they want to keep the current level of monetary stimulus, then they should do so on a less than one-for-one basis, St. Louis Federal Reserve Bank President James Bullard said Monday.

Otherwise, the Fed's policymaking Federal Open Market Committee will be making monetary policy even more accommodative than it already is, because outright Treasury purchases would be "more potent" than Twist purchases.

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