Why is Yellen slammed concerning T-bonds?

US Treasury Secretary Janet Yellen, who took office in January 2021, is accused of committing the worst mistake in the Department’s history when she “failed to issue cheap bonds before the Fed began its latest series of rate hikes,” which “paved the way for a debt catastrophe” and “exacerbated the US financial situation.

US billionaire and prominent financial figure Stanley Druckenmiller has recently noted that Janet Yellen should have issued more long-term government bonds before the Fed started raising interest rates at the beginning of 2022, similar to the way it did. Many homeowners in the United States have refinanced their mortgages at low costs.

Issuing debt bonds could have been easier with lower interest rates, as the Treasury does not need to pay high amounts to service this debt. However, some economists still believe that accusing Janet Yellen in this context is extremely unfair and may be a targeting of the secretary’s person as the whole thing is not based on sound economic grounds.