Treasury Steps Into the Bond Market as Housing Struggles | Fed Watch

This week on Fed Watch, ITR Economist and Speaker Connor Lokar examines the Treasury’s move to increase buybacks of long-term US bonds as rising yields and mortgage rates put renewed pressure on the housing market.

With single-family housing starts posting a historically sharp June-to-July decline and mortgage rates moving closer to 7%, businesses are facing another reminder of how higher borrowing costs can ripple through the economy. Connor breaks down what the Treasury’s latest intervention could signal, whether its goals are beginning to diverge from the Fed’s, and why the US crossing $40 trillion in national debt deserves attention.

Is this simply a liquidity operation, or an early sign of friction between the Treasury and the Federal Reserve?