How much does Fed actually consider the shape of the yield curve? Powell's recent comments indicated they focus on front of curve, as opposed to something like 2s10s. Aren't central banks like ECB/BoJ more attentive to overall shape?
> How much does Fed actually consider the shape of the yield curve?
Quite a bit. The February MPR cites "yields...across maturities" in the first sentence under financial conditions [1]. (One of the entire novelties of OG QE was the purchase of longer-dated securities.)
How much does Fed actually consider the shape of the yield curve? Powell's recent comments indicated they focus on front of curve, as opposed to something like 2s10s. Aren't central banks like ECB/BoJ more attentive to overall shape?