Bond Vigilantes Awoken by Obama Tax Plan, Deficit, Yardeni Says
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President Barack Obama is inciting the wrath of bond investors concerned that his agreement to extend and expand tax cuts will keep the federal deficit at record levels, according to economist Edward Yardeni.
“You are kind of seeing the bond vigilantes waking up in the United States,” Yardeni, president and chief investment strategist at Yardeni Research Inc., said by telephone in a Bloomberg Television ‘Inside Track’ interview from London. “It does seem to be a coincidence between this recent significant back-up in bond yields and concerns that Washington finds it all too easy to increase the deficit by extending the tax cuts and adding other tax goodies.”