Wall Street: El-Erian: "We will experience another phase of financial repression"
The capital market expert talks about the consequences of rising yields for Europe and Japan and why market interventions will not be successful in the long term.
US Treasury interventions in the markets have raised questions about a potential power struggle between investors and the US government. According to Mohamed El-Erian, the Trump administration's actions, including interventions in the bond market and trade policy, reflect a growing willingness to use economic means to achieve political and strategic goals.
The recent interventions aim to lower mortgage rates, ahead of the November Congressional elections, where affordable housing and living costs are key issues. El-Erian identifies four possible options for the US government, including stronger intervention, a pact with the US Federal Reserve, or adopting Japan's yield curve control model.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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