The Federal Reserve is reducing its holdings of Treasury bonds at a time when the US government is about to ramp up issuance amid surging budget deficits. Bob Michele of JP Morgan Asset Management, which manages $2 trillion, says he's closely watching the trend, but believes there will be enough overseas demand to prevent a crippling spike in US borrowing costs. "There’s no doubt that what we’re seeing coming out of the budget, the US is losing its fiscal discipline, and you’ll see...
READ FULL ARTICLE »
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!