Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
How Bessent's Bond Gambit Echoes the 1970s Stagflation Playbook
Episode 163 of Stagflation Conversations digs into Treasury Secretary Bessent's recent attempt to calm bond markets — a move that's stirring inflation worries instead. Lucas and Luna connect the dots between Bessent's buyback operation and the 1970s, when the Fed's attempts to manage yields backfired. With the US debt now past $40 trillion and 10-year breakevens stuck near 2.34 percent, they ask whether the Treasury's modern tools can dodge the mistakes of fifty years ago. They discuss why bond markets are watching the budget deficit like hawks, what the difference…
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