Federal Reserve Chairman Kevin Warsh’s focus on restoring price stability could face a new complication as the U.S. Treasury takes a more active role in influencing long-term borrowing costs.
The Treasury Department on Wednesday announced that it would double the size of its purchases of longer-dated U.S. government debt to $4 billion per operation. The move targets Treasury securities with maturities of between 10 and 30 years and comes as borrowing costs at the long end of the market have risen sharply.
