"Operation Twist" will have a modest impact on the economy, according to Federal Reserve Bank of Atlanta president Dennis Lockhart.

"The transmission mechanism for monetary policy remains somewhat impaired, and for this reason I am not expecting large gains from the Fed's most recent action," Lockhart told a conference in Jacksonville, Fla., according to prepared remarks released by the Fed. "I think it's realistic to expect modest positive impact from this program."

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.