The US Treasury announced it would double its long-end buyback operations, raising the maximum size from $2 billion to at least $4 billion per operation, targeting 10- to 30-year securities. Krishna Guha, vice chair of Evercore ISI, believes this decision complicates matters for Fed Chair Kevin Warsh but won’t affect the September rate decision. The Federal Reserve will maintain its data-dependent approach based on macroeconomic indicators, including inflation, employment, and growth. For Guha, the Treasury’s liquidity tool and the Fed’s monetary policy framework operate on different tracks.
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