We will soon enter the era of post-pandemic economics that will feature stratospheric government deficits necessitating the turn to a seldom used policy called yield curve control. … READ MORE >
yield curve control
FOMC meeting: Prelude to policy innovation ahead
In our estimation, the Fed is caught in the interstitial between its current rate, forward guidance polices and what we think will be a policy of yield curve control that will need to be put in place in 2021. … READ MORE >
Monetary policy in an era of pandemic economics
The Fed has put together nine different lending facilities and put forward liquidity commitments that run in the trillions. While we expect the Federal Open Market Committee to restate its commitment to keeping short-term rates as low as possible for as long as necessary, there will be more policy innovation coming in the near term. … READ MORE >