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Fed resists pressure to rescue Treasury market (semafor.com)
11 points by docmechanic 8 months ago | hide | past | favorite | 6 comments


Higher yields on government bonds are a sign of stress and eroding faith in the American government to pay its bills.

Totally self inflicted. Thanks "Tariff Man".


The fed is pretty limited what it can do to save the administration from its own erratic / bad choices.

What it could do is dig a deeper hole ...


Treasury Secretary Scott Bessent wants to change banking regulations that limit US banks from holding treasuries in an attempt to support the market. Timing changes in bank regulation during massive market disruption sounds dangerous and ill-advised to me.


Powell's term ends a year from now and Trump gets to appoint his successor. Trump will then have direct control over monetary policy.


They'll likely try to give us a re-do of Covid inflation to juice unadjusted numbers, but without an actual external emergency to even sort-of justify it.

I'm wondering how closely banks' rates will follow the Fed, this time. I'm guessing less-so than usual, making the measures less effective than normal. Lowering rates even further to compensate may signal panic and incompetence (even more) to the markets, which will be... fun.


This way financial madness lies.




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