CNBC reported US Treasury Secretary BESSENT may use the Treasury General Account
(TGA) at the Federal Reserve to fund Treasury buybacks. Castle Securities called
such intervention “financial repression,” arguing it could lower long-term
yields, weaken the dollar and raise imported inflation by altering market
pricing of the US fiscal outlook and inflation risks. Shah said suppressing long
yields will not remove upward pressure on yields amid tight labor and large
AI-related investment; the bond market, he wrote, signals fiscal or monetary
tightening is needed, and lasting solutions require tougher fiscal choices and
central banks willing to act preemptively on inflation, including rate hikes
when necessary.
