
News
U.S. Treasury Secretary Janet Yellen has become one of the most interventionist Treasury Secretaries in decades through a series of unconventional operations this year, aimed at curbing the rising borrowing costs in the United States. This week, the U.S. Treasury announced that it would "at least double" the scale of its planned repurchase of 10- to 30-year Treasury bonds. Previously, the Treasury had signaled a potential reduction in long-term debt issuance. On July 31, Yellen led the U.S. government's first purchase of yen in 30 years. Former Treasury official Mark Sobel commented that Yellen is "definitely an aggressive interventionist," and her style is reminiscent of her hedge fund background. He believes that Yellen and senior government officials are clearly concerned about the rising yields on long-term U.S. Treasuries. Influenced by inflation, the Federal Reserve's monetary policy, and the fiscal deficit, the yield on 10-year U.S. Treasuries has continued to rise, subsequently pushing up mortgage rates and dragging down economic growth. Some analysts point out that Yellen is attempting to stabilize the market through yield curve intervention, but also warn that without addressing the high debt and fiscal deficit, this strategy may be difficult to sustain in the long term
