Why Are Traditional Investors So Hungry for Yield Curve Control?

In This Article:

When FOMC minutes suggested the Federal Reserve might not employ yield curve control, the markets reacted angrily.

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Related: Bitcoin News Roundup for Aug. 24, 2020

On today’s edition of The Breakdown’s Long Reads Sunday, our selections have to do with one of the hottest topics in central banking: yield curve control.

What Is Yield Curve Control?
The first piece is from the St. Louis Federal Reserve and is a primer on YCC, including past U.S. implementations as well as versions from Japan and Australia.

Market Jitters Show How Much Fed Medicine Matters
Our second piece is an op-ed about how dramatically markets reacted to this small detail from the Federal Open Market Committee minutes, and what it suggests for their desires involving YCC.

See also: Winter Is Coming: Examining the Economy’s Eight-Body Problem

Related: People Aren’t Buying the ‘Great American Recovery’ Narrative

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

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