Yulia Slavina

Anas Alhajji: Fed capped long bond at 2.5 percent from 1942 to 1951

Anas Alhajji: Fed capped long bond at 2.5 percent from 1942 to 1951
Fed capped bond yield in 1942 to 1951

Anas Alhajji, managing partner, energy economist, market analyst at Energy Outlook Advisors LLC, recalls a period when the Federal Reserve maintained a cap on the long-term bond yield at two and a half percent from 1942 until 1951 to help the Treasury fund a war.

Alhajji mentions that by 1951, inflation was rising sharply while the bond yield cap was still in force, and that the situation ultimately concluded with a treaty.

Alhajji has previously commented on Citgo’s record ULSD exports and Venezuelan crude imports as possible factors influencing a planned U.S. asset sale, detailed in one past report. He has also observed a 62 percent decline in SunPower Inc shares following its acquisition by Carlyle Group, as reported in another analysis. These earlier notes reflect his ongoing coverage of key developments in energy and corporate transactions.

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