Treasury Auctions Show That the Fed Does Not Control Market Rates

Norbert Michel and Jai Kedia

As the war with Iran draws on, the Trump administration’s hopes for lower interest rates seem to be fading fast. If history is any guide, the administration will probably blame Jerome Powell for failing to produce lower rates, but blaming Powell (or his colleagues at the Fed) makes little sense.

As we’ve pointed out multiple times, that’s just not the way “interest rates” work.

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