The Hidden Easing: Why the Treasury’s T-Bill Pivot Is Quietly Inflationary

What looks like fiscal prudence may actually be stealth monetary fuel—and the dollar could pay the price.

The U.S. Treasury has recently tilted its debt issuance strategy heavily toward short-term Treasury bills (T-bills) over longer-dated notes and bonds. At first glance, this seems like a move toward discipline: front-end issuance tightens financial conditions, increases rollover risk, and reins in spending flexibility. Many observers interpret this as deflationary—a sign that markets will be constrained, not fed.