Understanding Yield Curve Control

Published on
March 1st, 2021
Duration
10 minutes


Understanding Yield Curve Control

Investor Tutorials ·
Featuring Jamie McDonald

Published on: March 1st, 2021 • Duration: 10 minutes

Jamie McDonald, former portfolio manager at Point72, breaks down the mechanics, desired effects, and unintended consequences of yield curve control. With rates already cut to zero and quantitative easing clearly not “temporary,” questions arise about what tools central banks have left. Yield curve control may very well be the next tool coming out of a dwindling arsenal of monetary policy tools. Some central banks like the BOJ have already implemented yield curve control, but questions remain as to whether it will make its way to the U.S. and what catalyst could finally force the Fed’s hand. For a deeper look at Japan’s experience with YCC, watch Weston Nakamura break down on the Exchange – http://rvtv.io/exchBOJYCC1