Federal Open Market Committee members were presented three options for tending to the System Open Market Account balance sheet at their last meeting, which resulted in Operation Twist, but they were also briefed on a reinvestment maturity-extension program and a large-scale asset purchase program, according to the minutes of its Sept. 20-21 meeting released Wednesday.

Participants deemed “large-scale asset purchases as potentially a more potent tool that should be retained as an option in the event that further policy action to support a stronger economic recovery was warranted,” though some said the eventual plan, the Twist, would be “more likely to raise inflation and inflation expectations than to stimulate economic activity.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.