The Federal Government Gets a Reason to Fight Inflation
n Monday the Treasury sold Treasury Inflation Protected Securities at negative yields, meaning that buyers expect inflation to be rapid enough to lift their yields into the positive range. That is scary enough as it is. But at least this gives the inflationists in the federal government and at the Federal Reserve a reason to keep inflation low. If they do, buyers of these TIPS will actually end up paying to lend money to the government.