When the US president argues interest rates need to be lower, the recurring theme is financing the deficit at lower cost, signaling a real risk that the US moves toward fiscal dominance — where monetary policy is subordinated to fiscal financing needs.

causalpending

Speaker

Maurice Obstfeld

Evidence Quote

We should not ignore fiscal in discipline and the real risk that the US moves into fiscal dominance.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

My Notes

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