IDEAS home Printed from https://ideas.repec.org/a/fip/fedcec/y2013ijul9n2013-08.html
   My bibliography  Save this article

Monetary policy tightening and long-term interest rates

Author

Listed:
  • Pedro S. Amaral

Abstract

The Federal Open Market Committee (FOMC) has maintained an accommodative monetary policy ever since the 2007 recession, and some financial market participants are concerned that long-term interest rates may increase more than should be expected when the Committee starts to tighten. But a look at five historical episodes of monetary policy tightening suggests that such an outcome is more likely when markets are surprised by policy actions or economic developments. Given the Fed?s new policy tools, especially its evolution toward more transparent communications, the odds of a surprise are far less likely now.

Suggested Citation

  • Pedro S. Amaral, 2013. "Monetary policy tightening and long-term interest rates," Economic Commentary, Federal Reserve Bank of Cleveland, issue Jul.
    • Handle: RePEc:fip:fedcec:y:2013:i:jul9:n:2013-08
    DOI: 10.26509/frbc-ec-201308
    as

    Download full text from publisher

    File URL: https://doi.org/10.26509/frbc-ec-201308
    File Function: Full Text
    Download Restriction: no
    File URL: https://libkey.io/10.26509/frbc-ec-201308?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:y:2013:i:jul9:n:2013-08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 4D Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.