Inflation, Debt, and The Fed (Part 1) with Scott Sumner and Lyn Alden
Village Global Podcast
00:00
Is the Fed Buying Allth Debt?
It's a real complicated question of the relationship between central bank purchases of public debt and interest rates. Ifyou buy debt, that directly tends to push the price of debt up and lower the yield on debt. But over medium to long term, there's also very powerful forces pushing the other way. So it's not clear to me how the fed is doing what it's doing, if it is in fact, holding down interest rates.
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