In the spring of 2012, yields on Treasury securities increased. An article in the Wall Street Journal
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In the spring of 2012, yields on Treasury securities increased. An article in the Wall Street Journal observed: “The immediate cause for the lift was the Federal Reserve’s more optimistic tenor” about the state of the economy. Why would the Federal Reserve becoming more optimistic about future economic growth cause yields on Treasury securities to increase?
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When the Federal Reserve becomes more optimistic about future economic growth it typically signals a shift in monetary policy stance towards a less accommodative position This change in sentiment can ...View the full answer
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Related Book For
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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