Perhaps not indefensible monetary policy, and the results of much hard work.

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The "Operation Twist" policy of the U.S. Federal Reserve at this point might just be a palliative against the greater problems presented by long - term deficits and the Great Recession overall, but it surely might serve as an example about what to do for future remedies to U.S. economics issues in the future:  Decreasing long - term yields of Treasury bonds reduces and / or manages the idea of inflationary influences, including expectations on the future business and commercial climate of the U.S. nationally and with respect to the overall impact of U.S. business on the world economy.  Not only does the dampening of long - term yields reduce the influence of inflation, which might or might not lessen itself due to this policy, but the expectations about future bond yields can have an effect on asset prices, national business growth and its parameters, and things like future hiring and productivity among other vital indicators and elements of the economy.

How did the Federal Reserve come up with such an idea?  It has in fact probably carrying out this "Twist" policy for years without the economic and statistical precision the Fed is using at this point as a fine - tuning measure to monetary policy.  The recent actions as carried out by the "Twist" might also have a desired effect on the value of the dollar, lending more stability to this currency while others continue to claw and scrape away at it (Renminbi, Euro, Yen, and even the peso.)  The current monetary policy designed to do a number of things to ameliorate economic conditions for all Americans shows the imaginative qualities of the Fed Chairman, Ben Bernanke and his chief economists and staff, in that it relieves somewhat the short - term stresses on the national economy in many areas, especially with respect to growth prospects and industrial operations as linked to economic indicators.  That does not go to say health care, retail, construction, insurance and securities, aerospace, and other sectors are ignored in the Fed's current efforts to foster growth; these industries are relatively autonomous and do well depending upon overall and other business conditions.  What this does mean is America might not fall into the same economic projects that other developed economies did in past years, chiefly during the 1980's and 1990's, where attempts at growth overall, again, were financed, and this led to other difficulties when business conditions did not improve.  Investors and market makers now have choices as to the way to steer their economic concerns with more precision, and this might allow the U.S. economy to begin emerging again from the slack it has experienced of late. 

THS