Can the Fed Control the U.S. Yield Curve?

The video discusses the concept of term premium, highlighting its historical low since 1962. It explores the global demand for US Treasurys due to their unique yield, despite the Fed's attempts to control interest rates. The discussion includes the Fed's influence on the yield curve, market reactions, and the potential for economic bubbles. Historical comparisons are made to previous economic periods, emphasizing the challenges faced by central banks in managing interest rates and market expectations.

What is the term premium and why is it significant in the context of bond investments?

How did the inflation years of the 1980s affect investor perceptions of bonds?

In what ways do global demand for US Treasurys impact the US yield curve?

Discuss the implications of a negative term premium on investment valuations.

What challenges does the Federal Reserve face in controlling the yield curve?