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Why Are Traditional Investors So Hungry for Yield Curve Control?

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

(Will H McMahan/Unsplash)
(Will H McMahan/Unsplash)

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

STORY CONTINUES BELOW
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This episode is sponsored by Crypto.comBitstamp and Nexo.io.

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.

See also: Winter Is Coming: Examining the Economy’s Eight-Body Problem

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

Nathaniel Whittemore

NLW is an independent strategy and communications consultant for leading crypto companies as well as host of The Breakdown – the fastest-growing podcast in crypto. Whittemore has been a VC with Learn Capital, was on the founding team of Change.org, and founded a program design center at his alma mater Northwestern University that helped inspire the largest donation in the school’s history.

Nathaniel Whittemore