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?

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

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

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

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