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1. What is "yield-curve control"? What did the Fed do to control the yield curve in...

1. What is "yield-curve control"? What did the Fed do to control the yield curve in March? Please explain

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Yield curve control is a set of methods adopted by the Federal Reserve in order to control the recessionary situation in the economy and stimulate the demand in the economy as it can refer to a situation in which when even if the Federal Reserve has cut down the short term interest rate and it did not work out, Federal Reserve will be pledging to buy out all the longer term loans in order to make the rate of these longer term loans higher than the shorter term loans,so that they are able to achieve the target and federal reserve will be trying to stimulate the demand in to the economy by making the curve normal

Federal Reserve tried to cut out on the short-term interest to the almost zero levels in order to stimulate the economy in March 2020 because it wanted to stabilize the economy and it wanted to eliminate the effect of coronavirus concern so it cut down the interest rates in order to stimulate the demand into the economy and generate inflation in the economy.

jeff jeffy answered 1 year ago
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