*Walter Bloomberg(@DeItaone):CITADEL WARNS BESSENT’S BUYBACKS COULD BACKFIRE Citadel Securities calls Treasury’s expanded bond buybacks “financial repression,” warning they could weaken the dollar and fuel inflation. Bessent’s strategy aims to suppress long-term yields, potentially using Treasury’s cash reserves to fund purchases. But Citadel argues intervention doesn’t solve the underlying problem of high deficits and inflationary pressure — it simply shifts stress elsewhere. The firm says lasting relief requires tighter fiscal policy and potentially higher Fed rates.

2026.08.24 15:31

CITADEL WARNS BESSENT’S BUYBACKS COULD BACKFIRE Citadel Securities calls Treasury’s expanded bond buybacks “financial repression,” warning they could weaken the dollar and fuel inflation. Bessent’s strategy aims to suppress long-term yields, potentially using Treasury’s cash reserves to fund purchases. But Citadel argues intervention doesn’t solve the underlying problem of high deficits and inflationary pressure — it simply shifts stress elsewhere. The firm says lasting relief requires tighter fiscal policy and potentially higher Fed rates.