Wall Street: El-Erian: „Wir werden eine weitere Phase finanzieller Repression erleben“

Frankfurt - Wall Street commentator Mohamed El-Erian has warned that we are about to enter another phase of financial repression. In recent weeks, he observed multiple instances of the US Treasury intervening in the markets. He questions whether this marks the beginning of a power struggle between investors and the US government.

However, this incident fits into the broader trend, as the administration of US President Donald Trump has demonstrated a willingness to intervene in various areas, including the bond market, trade policy, and direct investments in companies. The growing importance of geo-economics, which involves using economic resources to achieve political and strategic goals, is a key factor here.

The Trump administration's recent interventions seem aimed at addressing high living costs, especially in the lead-up to the November congressional elections. Affordable housing is a particular focus, with mortgage rates gaining increased importance. Both the intervention in the yen market and the larger bond purchases by the Treasury aim to lower mortgage rates. However, the effects of these interventions have been short-lived, with the yen and long-term US Treasury bonds showing little impact.

El-Erian outlines four potential options for the US government now. It could increase its intervention, leading to a possible pact with the Federal Reserve as the next step, or pursue a Japanese-style approach by seeking control over the yield curve.