Fmr. Treasury Secretary Lew: Bond buybacks won't fundamentally change the direction of the markets

Watch on YouTube ↗  |  September 17, 2026 at 18:09  |  4:19  |  CNBC
Speakers
Jack Lew — Former U.S. Treasury Secretary; former OMB Director; former U.S. Ambassador to Israel; Professor at Columbia School of International and Public Affairs

Summary

Jack Lew, former U.S. Treasury Secretary, discusses Treasury bond buybacks and argues they will not fundamentally change market direction or durably lower yields. He says high rates reflect inflation fears, fiscal deficits, and global anxiety, and stresses that U.S. credibility and confidence in Treasury markets are more important. He also warns Social Security will face funding shortfalls within the next president's term and calls for a bipartisan fix.

  • Jack Lew is skeptical that Treasury bond buybacks will lower yields or change market direction.
  • He compares the buyback effort to emptying an ocean with a teaspoon.
  • Lew attributes high rates to inflation fears, large deficits, and global anxiety.
  • He says U.S. credibility and confidence underpin the dollar and Treasury market liquidity.
  • He warns Social Security will run short of current income within the next president's term.
  • He advocates a bipartisan, 1983-style approach to entitlement solvency.
Ideas
Jack Lew Former U.S. Treasury Secretary; former OMB Director; former U.S. Ambassador to Israel; Professor at Columbia School of International and Public Affairs 1:59
Treasury buybacks cannot durably lower long-term yields.
Treasury bond buybacks and a marginal shift toward shorter-term issuance will not fundamentally change the direction of markets or durably lower Treasury yields; Lew compares the effort to emptying an ocean with a teaspoon. Long-term rates are high because of inflation fears, spending exceeding revenue, and global anxiety, so the policy is unlikely to solve underlying long-end pressure.
long-term U.S. Treasuries HIGH
Jack Lew Former U.S. Treasury Secretary; former OMB Director; former U.S. Ambassador to Israel; Professor at Columbia School of International and Public Affairs 2:21
U.S. credibility underpins dollar reserve status.
The more important issue than marginally lower rates is the credibility of the United States: confidence underpins the dollar's role as the world's reserve currency and the depth and liquidity of U.S. Treasury markets. If that confidence is damaged, it would matter far more than a temporary day of lower rates.
UUP MED
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This CNBC video, published September 17, 2026, features Jack Lew discussing long-term U.S. Treasuries, UUP. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jack Lew  · Tickers: long-term U.S. Treasuries, UUP