Federal Reserve officials began contemplating last month how to communicate their plans to keep interest rates near zero and to purchase Treasury securities to spur a stronger economic recovery once commercial activity resumes.
One idea discussed last month included ways to cap yields on short- and medium-term Treasury securities to reinforce the central bank’s verbal guidance around how long it expects to keep rates near zero, according to minutes released Wednesday of the Fed’s April 28-29 policy meeting. Real full article.