Deficit Spending Overshadows Fed Policy as Rates Stay Flat
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Heavy government borrowing could overshadow Fed's policy update as rates expected to remain unchanged.
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Treasury to announce fourth-quarter borrowing estimate and auction sizes this week, after shocking bond market with higher third-quarter needs.
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Government running large deficits even with robust growth, concerning investors who question demand for debt.
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Higher yields doing some of Fed's tightening work but deficits not sustainable with higher interest costs.
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Time to cut deficits with low unemployment, but instead adding to debt ahead of potential recession with limited stimulus options.