How Fed Could Goose Economy via Yield-Curve Control

Central banks set short-term rates and markets set the rest, right? That’s just the way thing work — except in dire need, like when facing a pandemic’s massive economic disruption. The U.S. Federal Reserve is just the latest central bank to give serious consideration to a policy called yield-curve control that seeks to hold down longer-term interest rates by capping what the government pays on its debt.