Biden Administration to "Do Whatever It Takes" to Take Radical Steps, Pushing 10-Year Treasury Yield to 5%

BlockBeats News, August 25th. According to Fox Business News, a knowledgeable Wall Street executive revealed that Treasury Secretary Yellen will "do whatever it takes" to make short sellers of U.S. Treasuries at the long end fear and attempt to push the 10-year Treasury yield to 5%. Potential measures may include Treasury buybacks, increased short-term debt issuance, and "potentially phasing out the 20-year bond."

Sources said these measures are short-term solutions aimed at preventing a further surge in yields to avoid choking growth with high rates approaching the midterm elections. However, Wall Street insiders pointed out that this does not address the root problem. The U.S. debt has reached $40 trillion, while AI infrastructure construction is intensifying capital competition. In the long run, it is expected that the Trump administration will not adopt fiscal tightening policies during the remaining term, and the plan is still to escape debt through economic growth and increased tax revenue. Faced with such a high debt level, the real solution is to raise taxes or tighten, which could trigger an economic recession.

Earlier, Yellen targeted the trillion-dollar "emergency fund pool" and planned to buy U.S. Treasuries, leveraging the TGA account to give the Treasury powerful tools to influence long-term bond yields.