Wall Street: El-Erian: „Wir werden eine weitere Phase finanzieller Repression erleben“
Der Kapitalmarktexperte spricht über die Folgen von steigenden Renditen für Europa und Japan und warum Interventionen am Markt langfristig nicht erfolgreich sein werden.
In recent weeks, the US Treasury has observed multiple instances of market interventions, raising questions about the onset of a new power struggle between investors and the government. This development is consistent with the broader trend of the Trump administration's increasing willingness to intervene, not only in the bond market but also in trade policy and through direct company investments.
The administration's actions reflect the growing importance of geo-economics, which involves using economic tools to achieve political and strategic objectives.
The administration's recent interventions have focused on high living costs, particularly housing, which is now in the spotlight just before the November congressional elections. The main target is affordable housing and affordable mortgage rates. The Treasury's bond purchases and yen market interventions, particularly, aim to reduce mortgage rates. However, the effects of these interventions have quickly diminished.
The administration has four options moving forward. It could intervene more aggressively, potentially leading to a new partnership with the Federal Reserve. Alternatively, it might follow Japan's model and strive for control of the yield curve.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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