Coming To A High Street Near You - YCC

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Yield Curve Control (YCC) Is Coming

 

There is muddled talk about a potential ‘policy’ pivot. The US Fed may decide to soon halt rate hikes, but the odds of another sharp rate-cutting cycle in Fed Funds seems more remote, as does a renewed over-reliance on QE. Yet, policy-makers need to avoid the potential ‘doom-loop’ between debt accumulation and rising rates, as long-term fiscal pressure loom. Japan ‘successfully’ employs yield curve control and the ECB and Bank of England have recently been seduced. Past FOMC discussions show a remarkable empathy from key US officials. Watch this space?

 

 

See our latest published research, Global View: Yield Curve Control (YCC) Is Coming – October 2022

 

 

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