Central bank efforts to curb rising prices face growing pressure as governments and corporations ramp up borrowing, potentially weakening monetary policy tools. With debt purchases surging, financial markets may struggle to absorb the increased supply, raising concerns over long-term inflationary risks. Economists warn that the strategy could clash with the central bank’s tightening measures, complicating the path to price stability. The tension highlights a critical test for monetary policy as demand for bonds outpaces traditional supply channels.
Increased purchases of debt threaten to undermine central bank chief Kevin Warsh’s bid to tame inflation
