Published Aug 27, 2026, 11:58 PM ET · Updated 3 months ago · 1 source

Monetary policy faces a fundamental contradiction in managing the yield curve

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Original Report

There is a fundamental contradiction in monetary policy, as policymakers, specifically referencing Kevin Warsh, express an intention to keep the long end of the yield curve down while simultaneously pursuing other, potentially conflicting, economic goals. It is unclear how these contradictory objectives can be achieved simultaneously.