On August 25, U.S. Eastern time, the inflation-debt dilemma places the Federal Reserve in a rare “two-sided performance” with its two officials addressing Taiwan.
Boston Fed Chair Susan Collins said: Unless there is solid evidence that inflation is continuing to cool, the Fed may have to raise interest rates sooner rather than later. LSEG data shows that money markets are still betting that there will be another 25-basis-point rate hike before the end of the year.
On the other side, Richmond Fed Chair Thomas Barkin turned his focus to debt. In a rare warning, he said that if the U.S. keeps running up debt, it could eventually scare investors in U.S. Treasuries into canceling orders and exiting the market. He also said bluntly that at the current level of debt, it has become an ongoing “headwind” the Fed is forced to withstand.
One side is the specter of inflation, the other is a snowballing debt. The Fed’s steering wheel may be harder to hold steady than people think.
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Boston Fed Chair Susan Collins said: Unless there is solid evidence that inflation is continuing to cool, the Fed may have to raise interest rates sooner rather than later. LSEG data shows that money markets are still betting that there will be another 25-basis-point rate hike before the end of the year.
On the other side, Richmond Fed Chair Thomas Barkin turned his focus to debt. In a rare warning, he said that if the U.S. keeps running up debt, it could eventually scare investors in U.S. Treasuries into canceling orders and exiting the market. He also said bluntly that at the current level of debt, it has become an ongoing “headwind” the Fed is forced to withstand.
One side is the specter of inflation, the other is a snowballing debt. The Fed’s steering wheel may be harder to hold steady than people think.
#Follow4Follow# #BackEveryFollow#