The Fed is losing control over the bond market. This is partly by design, but I wonder how much more discussion there'll be about the Fed's balance sheet over the next 6-12 months as it keeps shrinking and long-term bond yields keep swinging. https://t.co/LP3r4cCFgt pic.twitter.com/fYIraJunIF
— Lisa Abramowicz (@lisaabramowicz1) October 19, 2023
Budget Deficits 🇺🇸 pic.twitter.com/b0qMGJxFpx
— Win Smart, CFA (@WinfieldSmart) October 18, 2023
$33 Trillion +: Deficits Are Rising And Expected To Keep Rising As Bank Balance Sheets Get Slammed!
The US debt has surpassed $33 trillion. Contrary to Biden’s claims, the budget deficit remains high due to continuous spending and ongoing conflicts. The Federal Reserve is grappling with the repercussions of this massive debt. Effective monetary policy requires fiscal responsibility, which is currently lacking. Rising yields are impacting the long end of the yield curve and bank balance sheets. Despite Yellen’s praise, Biden’s approach to debt and foreign affairs remains questionable.