Rational Dissent Episode 006.

Can the Treasury Bully the Bond Market?

Financial conditions never tightened and liquidity never left, the Treasury could open its wallet the same week the Fed decides whether to hike. Is it a fool’s errand?

Available on YT, Spotify, Apple, Overcast, etc.

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Chapters

00:00 - Introduction and Topic Overview

02:23 - Defining Financial Conditions vs. Liquidity

05:54 - Liquidity and the Fed's Balance Sheet

08:26 - The Role of the Treasury General Account (TGA) 12:48 - Market Liquidity and Inflation Fears

21:51 - Term Premium and Market Risk

24:41 - The "Liz Truss Moment" and Bond Vigilantes

32:26 - Outro