NY Fed Issues New Bond Buying Policy PR Stating That Yield Curve Control Has Restarted?

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On Thursday the NY Fed issued a press release updating their bond buying policy for US Treasuries.

Read the PR here: BRIEF-NY Fed Issues Statement Regarding Treasury Securities Operations
www.msn.com/en-us/money/markets/brief-ny-fed-issues-statement-regarding-treasury-securities-operations/ar-BB1gHM8z

It seems the Fed will not be “modestly” reducing its US Treasury purchases on the front end of the yield curve and switching its bond purchases more toward the long end of the yield curve to try to cap interest rates in an acceptable range.

READ  Secretary Yellen shifts the fiscal policy goal posts

Track the US Treasury yield curve for free here:
www.gurufocus.com/yield_curve.php

There’s a number of reasons for this stated in the video. Higher interest rates can also collapse corporations and the real estate market along with US government finances as Uncle Sam cannot afford higher interest payments on the US national debt with annual tax receipts in a precarious situation.

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