WEBVTT

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You know, basically bond prices are set by supply

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and demand. The supply of, of treasuries is

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, is a, is a known thing, but

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demand can be affected by any and all of these

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theories. And also just by sentiment, sentiment too

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, which is hard to characterize. So, you

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know, markets have been volatile, they've been longer

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, you know, you've seen the uh rates moving

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up and down a lot. I think we have

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to let this play out and watch it. Uh

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but we, you know, for now it,

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it looks, it's, it's clearly a tightening in

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financial conditions. And so we'll be watching it carefully

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talking about the fiscal side and you've been very careful

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repeated to say you want to stay in your lane

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, you're not responsible for fiscal issues at the same

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time, you have to take into account and it

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looks like the United States is going to have to

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borrow a fair amount of money. By the way

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, other countries are as well around the world.

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We have a, a big uh big supply of

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treasuries coming on board. Uh to what extent do

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you think that is a longer term issue? And

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let me tie it back to something you referred to

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in your remarks. Actually, when we see geopolitical

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conflict around the world, like in Israel, like

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in Ukraine, some of the build up with respect

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to China, the defense spending is going to be

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elevated for the United States and for other countries.

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Do you take that into account in figuring monetary policy

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? Because it may well mean that we're borrowing a

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lot more money than we have in the past.

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So we of course, see the things same things

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that everyone else. So I just came back from

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IMF meetings this weekend and there's a lot of talk

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of the very large resource demands that organizations like the

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IMF and, and of course, countries are facing

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and the need for substantial amounts of revenue. You

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mentioned military, there's also dealing with, with climate

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change and things like that. So it's a,

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there, there's a lot of that. Um We

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don't, as you mentioned, we don't comment on

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, on uh fiscal policy. Actually, the fiscal

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authorities have oversight over us and not the other way

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around. So we, we stay away from that

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. Um So II, I would just say everyone

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knows that it's not a secret. And about all

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I can say is we know that we're on an

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unsustainable path fiscally. It's not that the level of

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the debt is unsustainable. It's not, it's that

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where the path we're on is unsustainable and we'll have

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to get off that path sooner rather than later.