Former Treasury Secretary Rubin: "US Treasury Maturities Must Be Extended"

▲Former Treasury Secretary Robert Rubin

[Asia Economy Reporter Kwon Jae-hee] Robert Rubin, former U.S. Treasury Secretary, expressed the view that the U.S. should extend the maturity of its government bonds by issuing bonds early to prepare for potential interest rate fluctuations.

According to Bloomberg on the 14th, Rubin, along with Joseph Stiglitz, professor at Columbia University, and Peter O’Zag, CEO of asset management firm Lazard Group, jointly contributed an article to the Peterson Institute for International Economics (PIIE) advocating this position.

He pointed out that the U.S. government should not take low interest rates for granted and should use the current moment as an opportunity to extend the maturity of government bonds.

Rubin, who served as Treasury Secretary under the Bill Clinton administration, stated, "We should extend maturities as much as possible given the current flat Treasury yield curve," adding, "This can be achieved by strengthening other long-term bonds, including 30-year bonds."

He also emphasized his support for issuing ultra-long-term bonds that exceed 30-year maturities.

Additionally, Rubin noted that while there are reasonable grounds for low interest rates to persist, they should not be taken for granted.

He explained, "Many experts believe that low interest rates will continue for quite some time, but our view is that the possibility of interest rates rising at some point is being underestimated."

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