U.S. central bankers find themselves in the most difficult of positions. They need to begin accommodating what will be a multiyear period of large annual operating deficits without appearing to subordinate monetary policy to the needs of the U.S. Treasury. That issue will be on display in multiple ... READ MORE >
yield curve control
FOMC meeting: Prelude to policy innovation ahead
The Federal Open Market Committee made no material changes to the path of monetary policy on Wednesday as it held the policy rate between zero and 25 basis points and maintained its forward-looking guidance on interest rates and asset purchases. The Fed in its statement included language that did not ... READ MORE >
Monetary policy in an era of pandemic economics
The Federal Reserve has moved the federal funds rate to the zero bound in a series of swift responses to the outbreak of the coronavirus and the market’s anticipation of the shock to economic growth and market stability. The Fed has put together nine different lending facilities and put forward ... READ MORE >