Anything the Chinese government can do with its mere $81 billion in US Treasury Bonds pales in comparison to what the Federal Reserve can do to lower interest rates back to their normal level. It wouldn't work. Plain and simple.
Anything the Chinese government can do with its mere $81 billion in US Treasury Bonds pales in comparison to what the Federal Reserve can do to lower interest rates back to their normal level. It wouldn't work. Plain and simple.In case you haven't noticed, the Fed no longer has much control over interest rates, money supply, economy or anything else. 9 Fed Funds cuts in one year, and long-term rates barely moved. The financial markets have evolved to the point where the Fed has very little influence. If the Chinese are dumping Treasuries, what's the Fed going to do? Buy them all? With what?