(Bloomberg) — Federal Reserve Bank of St. Louis President James Bullard said a strategy of capping Treasury yields out to a certain maturity may not work and such yield-curve control seems unnecessary with the market pricing in rates near zero out into the future.
“Right now there are more questions than answers about this, and I don’t really think this is a pending thing for the committee because we are already expecting rates to be low for quite awhile,” Bullard said Tuesday.
“I am not sure you need to put caps in or anything else. You have already got the low expected rates that you desire for this situation,” he said during an interview on Bloomberg Television with Lisa Abramowicz, Tom Keene and Jonathan Ferro.
Bullard’s comments echoed Fed Chair Jerome Powell, who told Congress last week that the Federal Open Market Committee’s study of yield curve control was at