Friday, July 10, 2020 / by Erik Bjorklund
Fed Meeting Minute Bullet Points: What's Yield Curve Control?
The minutes from the most recent Fed meeting were released today. While there's not much left to be said when they've already been so clear about keeping rates low for a long time, we did get a few new thoughts about "yield curve control." That would basically entail the Fed buying whatever it takes to keep longer term rates within a certain range compared to the short-term rates it already effectively controls through the Fed Funds Rate.
To be clear, the Fed doesn't control 2yr Treasury yields, but by keeping the Fed Funds Rate at zero, it greatly limits the extent to which 2yr...
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