The Fed has several different policy options for putting downward pressure on long-term interest rates at the upcoming FOMC meeting, which concludes on Wednesday 10th June. But with yields already very low across much of the curve, those measures would have little discernible impact on the near-term economic outlook. Instead, we expect the Fed to keep its focus on the new 13(3) facilities that are currently being rolled out, which are designed to boost credit to non-financial corporates and households.
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