Economists Warn That Treasury’s Bond Markets Fix Is Short Term

CEI’s Senior Economist Ryan Young was cited by The Washington Sun regarding the Treasury’s plan to buy bonds.

The Treasury’s plan to buy up bonds will increase the money supply, adding to the likelihood that the Fed will raise interest rates to limit inflation, said Ryan Young, a senior economist at the libertarian think tank Competitive Enterprise Institute.

He characterized the unease in the bond markets as a symptom of the United States’ larger fiscal issues, including the federal debt approaching $40 trillion and looming Social Security insolvency.

“When you see story after story about multitrillion-dollar problems like that, that’s going to make people a little less confident in the government’s ability to repay bonds in 10 years or 30 years, so I think that’s the root of the problem,” Young said.

Read the full article at The Washington Sun.