Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Can monetary policy influence long-term interest rates?
This Economic Letter argues that the Fed exercises significant influence on long-term rates. The key to reconciling this position with the empirical evidence resides in the gradual pattern of policy interventions characteristic of the Federal Open Market Committee (FOMC). This pattern, a likely reflection of the Fed's response to changes in economic activity in the long run (see Rudebusch 2002), is essential to understanding fluctuations in long-term rates.
Cite this item
Òscar Jordà, "Can monetary policy influence long-term interest rates?"
, Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 09, 2005.
Keywords: Monetary policy ; Interest rates ; Federal Open Market Committee
This item with handle RePEc:fip:fedfel:y:2005:i:may20:n:2005-09
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