When Treasury starts buying its own bonds, the Fed stops being the story
The argument here is that attention on the Fed misses where power has actually moved. Bond buybacks are described as a clear step toward fiscal dominance, and the evidence that the Fed’s usual lever has stopped working is recent, since Powell cut rates and yields went up rather than down. In theory lower rates would let the government refinance maturing debt without jumping from paying 2 or 3% to 4 or 5%, which would ease the pressure. The pressure itself is the problem, with debt service now the largest line item on the budget and still growing quickly. His conclusion is blunt, the system is broken, and good luck trying to fix it.
#Macro #Bitcoin #FederalReserve #Debt #Markets
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