What Can the Fed Do About the Deficit? Nothing
Greg Ip , The Wall Street Journal 4 min read 25 Oct 2023, 05:00 PM IST
SummaryAs deficits fuel rising bond yields, Fed Chair Jerome Powell has resisted the urge to offer fiscal advice, in contrast to 2020.
Federal Reserve officials say soaring long-term bond yields are a key factor in the economic outlook and their interest-rate decisions. They also say the swelling federal deficit is one reason yields are rising.