Fed Grapples with “Fiscal Dominance” Taboo at Jackson Hole - La Voce di New York
Fed Grapples with “Fiscal Dominance” Taboo at Jackson Hole - La Voce di New York
Source: La Voce di New York
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DW NOTE
The Fed is discussing fiscal dominance at Jackson Hole because it has become undiscussable everywhere else. The U.S. ran a $1.4 trillion deficit through June — 3% higher than last year — with 2026 projected to close at $1.9 trillion, roughly 6% of GDP. That's not a wartime emergency budget; that's the new peacetime baseline, and it means the Treasury's financing needs now dictate monetary conditions whether the FOMC admits it or not.