Economics
Fed to Stay the Course With Yield-Curve Control Likely Ahead
- Economists expect rates and guidance to remain unchanged
- Deflation scenario given 25% probability by economists in poll
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Federal Reserve officials are unlikely to signal any new moves at their meeting next week, though many economists expect they will turn to yield-curve control later this year, recruiting a tool not used in the U.S. since World War II.
Just over half of economists surveyed by Bloomberg said they anticipate the Federal Open Market Committee will eventually set target yields for certain maturities of Treasury securities. Of those expecting that step, most said the announcement would likely come in September, with two- or five-year maturities targeted.