Fed ‘Thinking Very Hard’ About Yield-Curve Control, Williams Says

The transcript discusses forward guidance and yield curve control as tools for managing the treasury market and shaping longer rates. It explores the potential of yield curve control to complement calendar-based guidance and other policy actions. The speaker highlights the importance of analyzing international experiences with yield curve control and its applicability to the US economy. The focus remains on using available tools to achieve maximum employment and price stability.

What is the primary focus of the initial discussion on yield curve control?

• Its use in controlling inflation

• Its impact on stock market volatility

• Its potential to complement calendar-based guidance

• Its role in shaping short-term rates

Which tool has been used in the past to affect financial conditions?

• Yield curve control

• Asset purchases

• Interest rate hikes

• Currency devaluation

What is a potential benefit of yield curve control mentioned in the second section?

• It can increase inflation

• It can complement other policy actions

• It can reduce government debt

• It can replace forward guidance entirely

What is the main focus of the analysis in the final section?

• The role of yield curve control in reducing unemployment

• The historical success of yield curve control

• The applicability of yield curve control in the US

• The impact of yield curve control on global markets

What are the goals mentioned in relation to using available tools?

• Maximizing stock market returns

• Increasing foreign investments

• Achieving maximum employment and price stability

• Reducing national debt