Fed retains credibility following forward guidance, says Dutch paper
The Federal Reserve's forward guidance has not damaged its credibility, according to a working paper published by the Netherlands Bank earlier this week.
In Reactions of real yields and inflation expectations to forward guidance in the United States, Richhild Moessner finds the Fed's forward guidance led to a "significant reduction" in US Treasury yields.
Moessner also studies the impact of the guidance on breakeven inflation rates – the difference between the nominal yields of fixed-rate
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