Rudy Yakym Continues to Buy U.S. Treasuries
Rudolph Chester Yakym III (Rudy Yakym), a member of the U.S. House of Representatives representing Indiana’s 2nd congressional district as a Republican, has continued to purchase large amounts of U.S. Treasury Securities in 2023. After buying $15,000 - $50,000 worth back in late November last year, he added an additional $80,000 - $200,000 total worth of purchases on January 12, January 17, and as recently as February 2nd, 2023.
Mr. Yakym is a relatively young member of Congress at only 38 years old, so it is worth looking into why he is purchasing more conservative securities than something like long-term stock holdings. That being said, Treasury security yields are the highest they have been for many years now, as the Federal Reserve has raised interest rates significantly to combat persistent inflation.
Recently, Congressman Yakym participated in his first Transportation and Infrastructure Committee hearing, questioning witnesses on inflation and supply chain challenges, noting that “It’s clear that reckless spending from the last two years has stoked runaway inflation. From the food on the table, to the table itself, to the trucks and trains transporting the food and tables, Americans were hit hard in the last two years with inflation.”
If inflation is persistent and the Federal Reserve is forced to continue hiking rates, those treasury bond purchases will likely lose some value as the price of Treasuries are inversely related to interest rates in general. Mr. Yakym is well in the green on some of his earlier purchases as rates have dropped recently, and if inflation does abate, there is more room for Treasuries to appreciate.
That, or it is possible Mr. Yakym is simply looking to get some low-risk investments in his portfolio during what could be a turbulent period for equity markets, if some market forecasters are to be believed.
