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Story summary
- Lisa Shalett warns that U.S. monetary policy is becoming constrained as the Federal Reserve may shift to alternative tools for managing its balance sheet.
- The shift comes as Treasury bill issuance soars and deficits approach $2 trillion annually.
- Shalett says high interest payments on debt could limit government spending, complicating efforts to control inflation.
- The discussion underscores the challenges policymakers face in navigating fiscal dominance and its implications for investment strategies.
