Board of Governors of the Federal Reserve System

concern. On the asset side, large banks that are subject to the liquidity

policies--that is, monetary and fiscal policies--were responsible for ...fiscal policies followed by governments in the region--budget deficits

yields of specific longer-dated securities being purchased and by reducing...yields on the targeted class of securities.2 Research suggests that these

policy uncertainty were major issues. Wage and price pressure remained...policy uncertainty reduced capital expenditures. Software and IT services

Yield Corporate Debt Mutual funds, Accessible Data Figure 1. HYB and BL...yield bonds held by high yield mutual funds to total outstanding high

High-Yield Mutual Funds, Accessible Data Figure 1: Net assets of BL MF...high-yield mutual funds by holding type (total, bank loan, corporate bond

Yield Bond U.S. Mutual Funds Accessible Data Figure 1: Total Net Assets...Yield Bonds 1/1/2000 18.90 75.18 1/1/2001 15.52 79.74 1/1/2002 10.74 83.68

and, finally, (4) who has taken the Fed's place in buying assets when ...and reserve balances) of the central bank. As soon as an asset purchase

And, of course, we cannot rule out that we may look back and conclude ...concerns that the so-called New Economy is spurring imbalances that at

policy only affect rates on longer-term Treasury securities, or will it...Treasury rates. In response to the lower Treasury yields, interest rates