Daniela Gabor: Fed quietly shifts USD 40 billion in Treasury purchases

Daniela Gabor: Fed quietly shifts USD 40 billion in Treasury purchases
@DanielaGabor: Fed shifts Treasury buying

Daniela Gabor argues that the Federal Reserve has subtly aligned with former President Trump's preferences by deciding to purchase USD 40 billion in Treasury bills monthly.

She emphasizes that while interest rate cuts garnered attention, this major operational shift represents a deeper engagement by the Fed with fiscal strategies. Gabor suggests that this move challenges the perceived independence of the US central bank, highlighting ongoing pressures from political entities.

Gabor’s latest assessment on the Federal Reserve's interplay with fiscal policy aligns with her prior examination of the crucial part played by central banks during the 2008 financial crisis, detailed in her analysis of the central banks' essential role through bond purchases. Her scrutiny of monetary authorities’ evolving influence also extends internationally, as seen in her interrogation of Burkina Faso's turn to stablecoins at the recent African developmentalism conference.

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