NegentropyorDie on Nostr: What if the primary driver of higher rates outside of the short end of the curve is ...
What if the primary driver of higher rates outside of the short end of the curve is driven by a dollar squeeze to service foreign dollar denominated debt. Then the Fed argument to focus on inflation resurgence with restrictive policy is doubly wrong. Not only does it make the fiscal situation worse because of debt service costs as they roll $7T this year, but it also exacerbates the dollar squeeze. If this is the case it's looser monetary policy, inflation be damned or Fed gets surprised by a liquidity crisis yet again of their own making.
Published at
2025-01-08 17:46:13Event JSON
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