There is growing speculation that when the Fed eventually announces a tapering of its asset purchases, it will simultaneously lower its unemployment rate threshold. A commitment to keep rates lower for longer might have some success in anchoring long-term Treasury yields. But whether it would be that effective against a backdrop of reduced bond buying by the central bank is a moot point.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.