Fed Intervention Saved Bonds in 2022, But Author Argues Crashing Stocks May Now Be Necessary to Protect Treasurys

• The author argued in September 2023 that crashing stocks was the only way to save Treasurys

• The Fed convinced markets that rate cuts were coming, causing a stock reversal and saving bonds without crashing stocks

• This came at the expense of higher inflation, so the Fed likely can't use that trick again

• The author argues the Fed now needs to crash stocks to save Treasurys, as history shows bond yields fall in big stock declines

• The author warns that intervention to save the yen may require Japan to sell Treasurys, which the US may need to offset by sacrificing stocks