Poster Breaks Down Bessent's Treasury Buyback Mechanism, Compares It to Yield Curve Control

Here is how Bessent's Treasury QE works:
- Step 1: Bessent issues UST bills.
- Step 2: The Fed prints money to buy them.
- Step 3: Bessent uses the proceeds to buy long-term USTs.
They don't call it QE because the Fed doesn't intervene directly in the long end...
Meanwhile the Fed is buying UST bills at a faster pace than during Covid.
I'm pretty sure we will effectively get YCC... just with a different name tag.