
#38: Danielle DiMartino Booth On The Future Of The Federal Reserve
Superinvestors and the Art of Worldly Wisdom
The Future of Yield Curve Control
The Wall Street Journal posited recently that if we do see interest rates back up too much, the Fed could quickly find itself insolvent and having to go to the Treasury for additional funding. If you get them high enough, you move the discussion away from negative interest rates over to yield curve control. There's no Hippocratic oath among central bankers. They don't know how to do nothing even though doing something is going to harm the patient more. The Bank of England produced an entire paper on this subject about the risks of imposing negative interest rates.
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