Clarida: Fed Could Apply Treasury Yield Caps

The United States Federal Reserve Vice Chairman, Richard Clarida, said on Monday that there is a possibility of employing Treasury yield caps in the future, Bloomberg reported.

“Yield caps and targets were not warranted in the current environment but should remain an option that the committee could reassess in the future if circumstances changed markedly.”

“Now that we have ratified our new statement, the committee can assess possible refinements to our SEP with the aim of reaching a decision on any potential changes by the end of this year.”