Fed's Barkin says rising US debt will eventually lead to a reckoning
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Barkin's comments add a senior Fed voice to a debate that has already unsettled bond markets this month, following the sharp Treasury sell off that forced an extraordinary buyback intervention and pushed long dated yields to multi decade highs. While he stopped short of predictin
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A Warning from Markets to the US Treasury
THINK Ahead: Bessent versus the bond market
The desk contends that Scott Bessent's recent strategies to manage long-end Treasury yields will struggle against underlying fiscal constraints and congressional gridlock. Despite attempts to implement new buyback programs and engage foreign central banks in repurchase agreements, the U.S. fiscal deficit remains stubbornly high at around 6%. Per the full note by James Smith, Bessent's reliance on short-dated bills to fund these deficits raises further concerns about sustainable borrowing costs across the economy, which traders should monitor closely. Consensus forecasts for EUR/USD show a moderate appreciation trend, aligning with the potential for continued dollar weakness as these fiscal challenges unfold.