The Fed is managing credit risk in risky markets through de facto yield curve control, as shown by the New York Metro bond example where the Fed rejected market pricing and bought bonds at lower yields, indicating most markets aren't correctly pricing risk because the Fed is handicapping it.

factualpending

Speaker

Lyn Alden

Evidence Quote

New York Metro... rejected market pricing... sold it to the Fed for a lower yield... yield curve control in these riskier markets

Source

Lyn Alden's Macro Masterclass (w/ Raoul Pal)Real Vision
Created: 8/12/2026, 10:22:19 PM

My Notes

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