from Zero Hedge
There has been spreading chatter that during Jerome Powell’s upcoming appearance at a Wall Street Journal virtual event on Thursday at noon, the Fed Chair may unveil changes to Fed bond buying and potentially unveil Operation Twist 3.0. As DataTrek‘s Nicholas Colas asks, “will he preview a change in the central bank’s quantitative easing program, one that shifts purchases to the long end to bring down 10-year Treasury yields?”
In response, Colas says that the question sent him to the academic literature and historical record concerning the prior 2 times the Fed delved into implicit yield curve control: