Anil Kashyap

Stevens Distinguished Service Professor of Economics and Finance at the University of Chicago Booth School of Business. His research focuses on monetary policy, banking and financial regulation, macroeconomics, and the Japanese economy; he also co-founded the U.S. Monetary Policy Forum and co-directs Booth’s Kent A. Clark Center on Global Markets.

Treasury Intervention Cannot Override Fiscal Pressure on Long-Term Yields

Anil Kashyap argues that recent U.S. Treasury moves to support the yen and potentially buy long-dated government debt may influence markets briefly but cannot durably lower borrowing costs or stabilize currencies without fiscal and monetary policy changes. In discussion with Steven Davis, he says large deficits and rising debt-service costs are putting sustained pressure on both U.S. and Japanese yields, while Kevin Warsh’s Jackson Hole remarks have set up an immediate test of whether the Fed will act on his stated concerns about inflation.

Hoover InstitutionSep 18, 20267 min read