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