×

BlackRock’s Fisher: Time to End ‘Operation Twist’

“Operation Twist” has outlived its usefulness and should be retired, BlackRock Global Head of Fixed Income Peter Fisher told CNBC on Monday.

“I think Operation Twist, it’s time to put it on the shelf. I don’t see why driving down the term premium will help us create more credit in our economy,” he said on “The Kudlow Report.” “I know the Fed thinks it will through a portfolio rebalancing.”

Fisher added that he believed continuing could create a liquidity trap.

“You keep pushing down on the term premium, you’re reducing the opportunity cost of putting your money in cash,” he said.

The economy faces a historic headwind, Fisher also said.

Total Cost: $58,065Tuition: $43,840Room & Board: $13,980Fees: $245Claremont McKenna, located near downtown Los Angeles, accepted only 12.4 percent of its applicants for the class of 2016, a rate that admissions counselor Brandon Gonzalez said ensures that students here will be going to school only with other top students.�The class of 2016 will be one of the most talented groups of students we have ever seen,�  The school will charge these students a tuition of $21,920 per semester, or $43,840 for the entire academic year, incurring a total cost of
Total Cost: $58,065Tuition: $43,840Room & Board: $13,980Fees: $245Claremont McKenna, located near downtown Los Angeles, accepted only 12.4 percent of its applicants for the class of 2016, a rate that admissions counselor Brandon Gonzalez said ensures that students here will be going to school only with other top students.�The class of 2016 will be one of the most talented groups of students we have ever seen,� The school will charge these students a tuition of $21,920 per semester, or $43,840 for the entire academic year, incurring a total cost of

“It was the end of a 30-year run bull run in credit creation. Let’s be clear: We got over exuberant with credit creation. When you squeeze back on the financial system, it’s a slow recovery. That's part of it,” he said.

WATCH the entire interview with BlackRock's Peter Fisher.

Tune in:

"The Kudlow Report" airs weeknights at 7 p.m. ET.

Questions? Comments, send your emails to: lkudlow@kudlow.com