How the war was funded. (opens in new tab)

When the FOMC met on the morning of June 9, 2020, in the midst of the pandemic, the question on the table was whether yield curve control (YCC) would be an appropriate tool to deploy in the pandemic. One FOMC member said "there are no bazookas left in our unconventional but tested toolkit". The FOMC revisited the one historical episode where the U.S. actually deployed yield curve control. Shortly after the U.S. joined the Second World War in December of 1941, the Fed and the Treasury decided ...