In a recent Brookings article, BWC Member Nellie Liang discusses the growing strains on the U.S. Treasury market as government debt and repo activity continue to rise. She explains how recent regulatory changes, primarily expanded central clearing and revised bank leverage requirements, are intended to support market resilience and expand intermediation capacity. Liang concludes that while these measures improve stability, long-term resilience will ultimately require curbing the growth of federal debt. 

To read more at Brookings, click here. 

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.