31 October 2022
Now Secretary of the Debt Janet Yellen says she wants to buy back 20-year treasuries. Rafi Farber has a question about this. How in the name of math do you buy back $1.4 trillion in debt with only $600 billion in your bank account at the Fed? The answer: By selling even more short term debt, which have even higher yields than what you’re buying back, because the yield curve is…