The US Fed can't reduce long-term bond yields and the use of force will cause more problems than it solves

📅 Published: December 17, 2025 | 📂 Category: Uncategorized

Powell’s successor may push short-term bond yields down, but long-term yields are beyond Fed control. Inflation worries, debt over-issuance and other factors could keep 10-year yields elevated. Intervention at the long-end of the yield curve would distort risk pricing and could boomerang.

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