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Marketplace · August 20, 2026 · 00:26:09

Sec. Bessent's big plan to finance the national debt

The Treasury's buyback of long-term bonds disappointed, with interest rates barely moving. The next move is to issue a lot more short-term securities, but that strategy carries its own risks. Meanwhile, multifamily construction permits are a housing bright spot, the Fed's preferred inflation measure is getting a methodology update, and two craft-focused small business owners share their view from the ground.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Highlights

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Buying a house with a credit card
The Treasury's plan to finance the national debt with more short-term securities is likened to buying a house with a credit card.

Editorial

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Bond buyback letdown
The Treasury's buyback of long-term bonds had little impact on interest rates.
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Multifamily construction permits rise
Multifamily construction permits are increasing, a bright spot in housing.
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Fed's inflation measure changing
The Federal Reserve's preferred inflation gauge, the PCE index, is undergoing a methodology change.

Misc

✧The episode uses the analogy 'buying a house with a credit card' to describe the Treasury's short-term borrowing strategy.
✧As central bank bigwigs gather in Jackson Hole, local businesses carry on.
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