Treasury Secretary Yellen Refutes Economist Nouriel Roubini's Allegations of Financial Manipulation

U.S. Treasury Secretary Janet Yellen has denied claims by economist Nouriel Roubini and former Trump administration official Stephen Miran that the Treasury manipulated the issuance of securities to lower real borrowing costs. Yellen assured in a Bloomberg interview that no such strategy had ever been discussed or implemented. Roubini and Miran’s paper argued that Treasury actions last fall reduced 10-year Treasury yields by a quarter of a percentage point, similar to a one percent decrease in the Federal Reserve’s rate. Treasury assistant secretary Joshua Frost stated the department’s actions were within market expectations, which Yellen supported. These allegations follow earlier accusations from Republican lawmakers about Yellen manipulating Treasury debt auctions to enhance the economy and President Biden’s image. Additionally, Yellen has defended the Federal Reserve’s independence and opposed Trump’s tariff-based tax proposals. She remains confident in the U.S. economy, predicting inflation will meet the Federal Reserve’s 2% target by next year.