Federal Reserve Puzzled by Yield Curve Steepening

June 1st, 2009

Well .gov just went into the automobile manufacturing business. What could possible go wrong?

Via: Reuters:

The Federal Reserve is studying significant moves in the U.S. government bond market last week that could have big implications for the central bank’s strategy to combat the country’s recession.

But the Fed is not really sure what is driving the sharp rise in long-dated bond yields, and especially a widening gap between short and long term yields.

Posted in Economy | Top Of Page

One Response to “Federal Reserve Puzzled by Yield Curve Steepening”

  1. tochigi says:
    June 2, 2009 at 4:18 am

    “…the Fed is not really sure what is driving…”

    maybe they need to talk to Prof. Ferguson. maybe it’s something to do with “going bust”?

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