Investors Get Ready for the Fed to Cap Rates – The Wall Street Journal

Investors Get Ready for the Fed to Cap Rates  The Wall Street Journal

Investors are preparing for the Federal Reserve to tap a policy tool untouched since the aftermath of World War II, a move that could change how key financial markets behave and give an even bigger boost to the stock market’s best performers. 

Members of the Fed are embracing the idea of putting caps on government bond yields. The Fed would buy Treasurys in whatever amount necessary to keep borrowing costs from getting above a specific range or maximum yield. It last introduced yield caps during the 1940s, when the Treasury…

Source: wsj.com

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