The U.S. Treasury Department intervened to push down long-term interest rates, while Fed Chair Waller advocated leaving matters to the market; concerns are also mounting over the possibility of a downgrade in U.S. sovereign debt ratings. - Moomoo
The U.S. Treasury Department intervened to push down long-term interest rates, while Fed Chair Waller advocated leaving matters to the market; concerns are also mounting over the possibility of a downgrade in U.S. sovereign debt ratings. - Moomoo
Source: Moomoo
―
DW NOTE
The Treasury Department is attempting to suppress long-term rates while the Fed chair openly says to let the market set prices — that's not policy coordination, that's a public split over who controls the yield curve. With the fiscal deficit running at 6% of GDP and Hormuz closed for a month, sovereign downgrades aren't a risk to monitor; they're a rational repricing of credit quality that intervention only postpones.