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Yield Curve Control – Another Fed Tool?

The Fed is considering using a new tool – Yield Curve Control.
This will put more money in the system which means more deposits.
Read why and how below.
Semper, Mike

Banks, Thrifts & Credit Unions Hit the Bottom of Deposit Rates Falling

Lake Forest, IL (July 7, 2020) The Federal Reserve in Washington unveiled last week a new tool, Yield Curve Control.  Yield Curve Control (YCC) is a way for the Fed thru purchases or sales of bonds of various terms to maintain a constant level of bond rates or controlling the yield curve while stimulating the economy. Moebs $ervices, an economic research firm shows the effect of Yield Curve Control in a report resulting in two major economic factors.

First, although this appears like Quantitative Easing, YCC is not QE. QE was attempted by the Fed after the Great Recession started in 2008-9. QE was too little, too late, and never did stimulate the economy too much. READ FULL ARTICLE

Written By: m.moebs
Date Posted: 7/8/2020
Number of Views: 327