U.S. Has Conducted $800 Billion QE Equivalent, Equivalent to Four Rate Cuts?

Yellen refuted "Dr. Doom" claims that the Treasury manipulated U.S. debt, asserting there was no such strategy.

In a recent paper, "Dr. Doom" Roubini argues that the aggressive issuance of U.S. Treasury bonds over the past year has created a long-term coupon debt gap exceeding $800 billion, effectively equating to a 100 basis point rate cut, offsetting last year's rate hikes.

Wall Street's major banks generally hold an optimistic view of the U.S. Treasury's debt issuance strategy. Banks like BofA, JPMorgan, and Goldman Sachs predict that despite concerns over the expanding deficit, the Treasury's bond issuance strategy is unlikely to change significantly in the short term. As long as demand for short-term debt remains strong, the current policy framework will remain effective.