Wells Fargo economists Tom Porcelli and Michael Pugliese pointed out in their research report that in view of the unsustainability of fiscal policy, the US Treasury's decision to at least double the scale of long-term bond repurchases requires instead increasing the issuance of short-term bonds to fund them, which is equivalent to a “big gamble” on lower short-term interest rates. Short-term interest rates may fall, but only if inflation remains sticky and expectations for neutral interest rates continue to rise. They wrote, “In other words, with a budget deficit of 6% of GDP and interest costs at historically high levels, shortening the weighted average tenure of treasury bonds is risky.” Liquidity repurchase tools are not involved to act as “long-term support tools”. Although the reaction may be positive, the market may not necessarily see it this way in the long run.

Wells Fargo economists Tom Porcelli and Michael Pugliese pointed out in their research report that in view of the unsustainability of fiscal policy, the US Treasury's decision to at least double the scale of long-term bond repurchases requires instead increasing the issuance of short-term bonds to fund them, which is equivalent to a “big gamble” on lower short-term interest rates. Short-term interest rates may fall, but only if inflation remains sticky and expectations for neutral interest rates continue to rise. They wrote, “In other words, with a budget deficit of 6% of GDP and interest costs at historically high levels, shortening the weighted average tenure of treasury bonds is risky.” Liquidity repurchase tools are not involved to act as “long-term support tools”. Although the reaction may be positive, the market may not necessarily see it this way in the long run.