09/04/2026
In today’s Policy Note, “Treasury Buybacks: Much Ado About Nothing: How Central Bank Policy, Not Bond Markets, Sets Government Borrowing Costs”, Levy Scholars Yeva Nersisyan and L. Randall Wray argue that it is the Fed that holds sway over interest rates, while Treasury buybacks have limited power to move the needle.
In other words, the market may set the price, but the Fed sets the tone.
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