As part of its effort to stimulate economic growth, the Federal Reserve recently has invested its funds in longer-term securities rather than concentrating on the short-term end of the yield curve. Greatly reduced short-term rates over the past several years have not had the economic effects that were expected of them, and this has resulted in a certain amount of frustration by the central bank. After all, one of its roles is to support and promote sustained economic growth, and that has been hard to come by recently.
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