Economics

Repo Market Is Telling Washington That Deficits Still Do Matter

  • Bond dealers choke on Treasuries as U.S. goes deeper into red
  • ‘There’s no down time on the supply front,’ FTN’s Vogel says
Photographer: Matt Mawson/Moment RM
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These days, you’d be hard-pressed to find many people in Washington who are all that worried about the U.S. budget deficit. Republicans seem more interested in tax cuts, Democrats have ambitious spending plans for everything from health care to infrastructure, and Modern Monetary Theory, a manifesto for free-spending governments, is all the rage in progressive circles.