Peter Schiff Says Rising Treasury Yields Could Trigger Larger Buybacks, Fed QE
JH Kim
Summary
- Peter Schiff said continued increases in US Treasury yields could lead to broader government intervention in markets.
- Schiff said that if long-term Treasury yields keep rising, the chances of a larger US Treasury bond buyback program and possible quantitative easing (QE) by the Fed would increase.
- The US Treasury doubled its long-dated bond buybacks to at least $4 billion from $2 billion, but the market sees Treasury buybacks as different in nature from the Fed's quantitative easing.
Forecast Trend Report by Period
Bitcoin skeptic Peter Schiff said persistent increases in US Treasury yields could prompt broader government intervention in financial markets.
Cointelegraph reported on August 20 that Schiff argued continued gains in long-term Treasury yields could lead the US Treasury Department to further expand its bond buyback program. He added that the move could ultimately prompt the Federal Reserve to launch formal quantitative easing, or QE.
The Treasury recently doubled its long-dated bond buybacks to at least $4 billion from $2 billion in response to a sharp rise in long-term yields. Still, the market views Treasury buybacks and Fed quantitative easing as fundamentally different policy tools.
JH Kim
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