Traders say Goldman Sachs forecasts that the Fed will announce a lengthening of average maturities of the bonds held on the Fed’s balance sheet. That was last tried in the early 1960s.

The Fed would sell short-term bonds and buy longer-term bonds, seeking to drive rates lower at the long-end of the yield curve and lowering mortgage rates in the process.

The overall size of the balance sheet would not rise, so it would not be additional QE, just a rearrangement of the deck chairs on the Titanic, in essence. Not a great dal of impact on the financial markets relative to fresh outright bond purchases and a modest USD plus if used as it is not a bad as more QE…