Q: Why these attacks now? A: Emerging fiscal dominance Consider the following developments: 1. Trump wants rate cuts => ↓int cost on debt 2. SLR tweak => banks absorb more debt 3. Stablecoins => ↑ demand for tbills 4. Calls to end IOR => ↑ revenue to Treas 5. Trump softening inflation target All these are driven by fiscal pressures and are early warning signs of impending fiscal dominance.
Joe Weisenthal
Joe Weisenthal20.8. klo 20.59
A day before Jackson Hole begins. Yet another attack on a Fed governor. Regardless of the official theme of this year's conference (which will be public tomorrow when the event begins), attacks on an independent Fed will be the real, unofficial theme.
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