Wall Street Economist Warns Fed's 'Original Sin' Could Push 10-Year Treasury Yield to 8%

Steven Blitz, chief US economist at TS Lombard, warns that the Federal Reserve's premature monetary easing before fully suppressing inflation constitutes an 'original sin' that could drive 10-year US Treasury yields to 8% over the coming years. Blitz argues that the combination of loose fiscal and monetary policies will continue to elevate inflation and yield floors, noting that political pressures have hindered effective inflation control. He characterizes 2025 as a 'recession that didn't happen' due to fiscal expansion and suggests that market pricing of sovereign debt risks is increasingly reflected in swap spreads.