Fed to Broadly Accept a Steepening Yield Curve: Peterson’s Posen

The video discusses the implications of yield curve steepening, suggesting it indicates rising inflation expectations and growth prospects. It explores the Federal Reserve's cautious approach to yield curve control, highlighting uncertainties in fiscal policy. The speaker argues for managing longer-term yields to better influence fiscal-monetary interactions, cautioning against focusing on short-term yields due to limited economic impact.

In what ways might fiscal policy uncertainty affect the Federal Reserve's decisions on yield curve control?

Discuss the implications of managing fiscal monetary interactions through yield curve control.