HSBC’s Major Says Fed Has Made Five-Year Treasuries ‘the New Twos’

The transcript discusses the Federal Reserve's potential use of yield curve control, focusing on forward guidance as a primary tool. It highlights the Fed's strategy of maintaining low interest rates through 2022 and the implications for bond investments. The challenges of targeting longer-term bonds, like the 10-year and 30-year, are explored, with comparisons to Japan and Australia. The Fed's current focus is on forward guidance, with yield curve control as a possible future tool once other measures are exhausted.

What is the significance of yield curve control in relation to the Federal Reserve's monetary policy?

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How does forward guidance relate to the Federal Reserve's strategy for managing interest rates?

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What implications does the statement 'the two year is linked to money' have for investors considering bond purchases?

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What challenges might the Federal Reserve face if it attempts to target the 10-year or 30-year bonds?

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In what ways did the experiences of the 40s and 50s influence the Federal Reserve's current approach to yield curve control?

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