Long Rate, Yen Intervention, and Fed Independence | The Trade Off

CSIS Economics Program Director Philip Luck and Non-resident Senior Adviser Mark Sobel discuss what is driving long-term interest rates, why the July yen operation broke with four decades of G7 practice, and where the line between fiscal and monetary authority now sits.

Sobel says the US is pursuing damaging, reckless fiscal policies, with deficits around 6% of GDP. He also notes the Treasury’s unscheduled buybacks and the use of the FEMA account reflect concern about rising long-term rates.

Sources: CSIS (YouTube)