U.S. Treasury, Fed Appear to be at Odds

Dow Jones
8小时前

0606 GMT - The fact that the U.S. Treasury is buying bonds to lower yields could prevent markets from fully pricing inflation and fiscal risk, and from reacting fully to Fed policy decisions, says Ipek Ozkardeskaya, strategist at Swissquote. As such, it could make the Fed's job of bringing inflation back toward its 2% target harder--something that Fed Chair Kevin Warsh probably wants to avoid. He won't want to look like a fool in front of the entire world, she adds. This week's Jackson Hole gathering might bring some clarity on how the Fed will fit into the administration's plans, she says.

 

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