Inflate Or Collapse: Could Yield Curve Control Be Considered A Modern Strategy?

U.S. debt stands near 120% of GDP, while interest costs are approaching 20% of federal receipts, underscoring increasingly unsustainable fiscal dynamics. Persistent deficits and elevated long-term yields could prompt consideration of yield curve control, a monetary-policy tool last used in the 1940s. Such a shift would carry significant implications for Treasury markets, inflation expectations and the Federal Reserve's policy framework.