Peter Schiff Calls Treasury Buybacks 'a Sign of Desperation' as Bond Yields Hit Multi-Decade Highs: 'The Markets Will Prevail in the End'
Veteran investor Peter Schiff said “Treasury bonds will continue to sell off” no matter what the Federal Reserve decides Wednesday, arguing bonds are in a genuine selloff that a single small rate hike can’t reverse. ‘The Fed Is Far Behind the Curve’ The central bank’s small hikes “will not allow it to even catch up, let alone get out in front, which is necessary,” Schiff told on Sunday. A quarter-point move this week, or another in December, would be “too little, too late” in his view. He added that “much more aggressive rate hikes are needed, as is a contraction in money supply and reduction in the size of the Fed’s balance sheet,” though he does not expect it to happen. Read Also: Ed Yardeni Says 10-Year Bond Yields At 5% Show 'Confidence' in the Economy, Peter Schiff Says It's More Like a 'Launching Pad' to 6% ‘A Sign of Desperation’ The Treasury’s escalating bond buybacks amount to “a sign of desperation,” Schiff said, arguing President Donald Trump ‘s administration is trying to prevent the market from pushing rates higher so it can avoid the consequences of being “less fiscally irresponsible.” The department has ramped up the program in stages since August, doubling its long
Veteran investor Peter Schiff said “Treasury bonds will continue to sell off” no matter what the Federal Reserve decides Wednesday, arguing bonds are in a genuine selloff that a single small rate hike can’t reverse. ‘The Fed Is Far Behind the Curve’ The central bank’s small hikes “will not allow it to even catch up, let alone get out in front, which is necessary,” Schiff told on Sunday. A quarter-point move this week, or another in December, would be “too little, too late” in his view. He added that “much more aggressive rate hikes are needed, as is a contraction in money supply and reduction in the size of the Fed’s balance sheet,” though he does not expect it to happen.
” The department has ramped up the program in stages since August, doubling its long-term buyback size before tripling it to a $6 billion maximum for a recent operation to buy back off-the-run notes and bonds, even as yields continued to climb. “The markets will prevail in the end,” Schiff added. S. fiscal risk.
” The Treasury Department and the Fed did not immediately respond to ’s request for comment. 02% mark that would put it at its highest since July 2007. 37% on Monday, extending its rise to the highest level since 2007. 4% for a Federal Reserve rate hike on Wednesday, according to the CME FedWatch tool.
09% in extended trading. 93. Edge Rankings indicate iShares 7-10 Year Treasury Bond ETF has a Momentum score in the 23rd percentile and negative price trend across the short, medium and long term. See More: Top Momentum Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.
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