Bank strategist Ipek Ozkardeskaya said US Treasury bond purchases to suppress
yields may prevent markets from fully pricing inflation and fiscal risk and
could blunt market reactions to Federal Reserve policy. That, she warned, may
make it harder for the Fed to pull inflation back toward its 2% target — an
outcome Fed chair Kevin Warsh would want to avoid. Ozkardeskaya added this
This week's Jackson Hole meeting could clarify how the Fed will fit into government
policy plans.