from King World News
As countries get ready to reopen, this is what to anticipate.
If Words Don’t Work
May 21 (King World News) – Peter Boockvar: If the (Fed’s) words don’t work in keeping rates low, “A few participants also noted that the balance sheet could be used to reinforce the committee’s forward guidance regarding the path of the federal funds rate through Federal Reserve purchases of Treasury securities on a scale necessary to keep Treasury yields at short to medium maturities capped at specified levels for a period of time.” This is otherwise known as yield curve control. It was done in the US in the early 1940’s and currently is being conducted in Japan.