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It is absolutely the case in the USA that the Fed pushed down long term interest rates by their manipulation of shorter term rates, thereby modifying the yield
by patrickg_zill 10y ago
It is absolutely the case in the USA that the Fed pushed down long term interest rates by their manipulation of shorter term rates, thereby modifying the yield curve.
The Fed themselves state this, eg http://www.frbsf.org/education/teacher-resources/us-monetary-policy-introduction/real-interest-rates-economy http://www.frbsf.org/education/teacher-resources/us-monetary...
Only the most obtuse person would argue otherwise, for example by claiming that market forces set the rates...but the Fed has truly unlimited credit so only an idiot would bet against them.
- lallysingh 10y agoI liked your comment until you said "only the most obtuse person."
- patrickg_zill 10y agoIt wasn't meant for you, but for those who argue that the market is the sole determinant of what happens. The Fed is like the engine of a plane, the market the wings. To argue that all you need are wings and the engine is irrelevant, is what too many (on other forums) argue.