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Treasury-Fed Clash Exposes Broader Policy Stress
Global markets woke up Friday morning to indications that exceptional and lasting policy support may be less certain than widely assumed. While short-term political considerations may well be playing a role — a view that most investors will be quick to grasp, dismissing the news as “noise” and reversible — a bigger phenomenon may well be in play: What was first designed as a huge “one-round” policy intervention has turned out to be much more than that, and the longer this “multiround” process persists, the greater the pressure on the ability and willingness of policy makers to deliver, especially in ... (full story)