But the
experience of other central banks, in particular the Reserve Bank of New Zealand, «suggests that tightening by increasing the interest rate paid on central bank balances can help reduce or eliminate the need to drain balances,» according to a 2010 study by three Fed economists.
The US Federal Reserve and a
number of other central banks across the developed world maintained an ultra-loose monetary policy to support the economy following «The Great Recession».
Bond yields have been driven lower not just by the Federal Reserve's (Fed's) quantitative easing (QE), but more recently by the
behavior of other central banks.
JAMIE DIMON: Let me start by saying that I think what the Fed did, and
some of the other central banks, it worked.