What would yield curve control mean for Fed’s asset purchases?
Policy may imply shift in rationale from crisis to recovery, and potentially more volatility in purchases
At the Federal Open Market Committee (FOMC) meeting in April, members raised the possibility of using yield curve control (YCC) to strengthen the central bank’s forward guidance on interest rates.
“Several participants remarked that a programme of ongoing Treasury securities purchases could be used in the future to keep longer-term yields low,” the minutes say.
“A few participants also noted that the balance sheet could be used to reinforce the Committee’s forward guidance regarding the path
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