Fed Control Moving Beyond Front of Yield Curve, BMO’s Lyngen

The transcript discusses Powell's dovish stance and its implications for market expectations. It explores the potential impact of extending the weighted average maturity of purchases on the treasury market and the role of outcome-based forward guidance for QE. The discussion also covers the extent of the Fed's control over the treasury market, highlighting its influence beyond the traditional front end of the curve.

In what ways might outcome-based forward guidance affect market expectations?

Discuss the implications of the Fed's intention to maintain market stability for an extended period.