Limits to the Fed's Control of the Interest Rate
{"Image DocumentName": "Limits to the Fed\u2019s Control of the Interest Rate", "Image ImageDescription": "The Fed may not be able to shift the entire yield curve up or down, but may make it steeper, flatter or inverted. A yield curve is a curve that shows the relationship between interest rates and bonds\u2019 time to maturity. An inverted yield curve is one in which the short-term rate is higher than the long-term rate. As financial markets become more liquid, and technological changes occur, the Fed\u2019s ability to control the long-term rate through conventional monetary policy lessens.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}