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Michael Strain expresses skepticism regarding Secretary Bessent's recent financial engineering and jawboning aimed at reducing long-term yields.
Strain points out that these measures are unlikely to succeed, as they do not address underlying economic fundamentals.
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Strain has recently addressed the challenges posed by high U.S. government debt, 6.7% mortgage rates, and elevated energy costs in his analysis of current economic pressures. He has also argued that a Federal Reserve rate hike next month is justified, in agreement with Chairman Warsh, in his recent commentary on monetary policy. These perspectives frame his current doubts about the effectiveness of recent official efforts to influence yields.