Fed Bond Buying: A Band Aid for a Much Larger Wound The latest move by the Treasury Department to buy up to $6 billion in long term government bonds has been touted as a way to ease borrowing costs and curb rising yields.
However, this is merely a symptom of a far more pressing issue: the spiraling national debt. The country's deficit continues to balloon, with the national debt now exceeding $40 trillion.
Economists such as Brett House and Guy LeBas have pointed out that the bond buyback plan doesn't address the root cause of the problem – the U. S. 's persistent deficit.