The Fed is going to swap some short-term (<3 year) Treasuries into long-term (6-30 year) Treasuries to push down the long-term interest rates. This is intended to stimulate business investment (the build up of their capital stock), since businesses decide to invest on the basis of the comparison between:
- the benefits they expect to receive from their investment (i.e. the return rate) and
- the cost of using money (i.e. the interest rate, once they adjust for inflation, risk, and other premia).