09/09/2025
The "Fed" only controls the overnight rate. It can influence short term lending more tgan say a 30 yr mortgage. The Fed rate is the rate that banks borrow from eachother at. Borrowing from Peter to pay Paul. US GOV (liquidity support). If you don't understand US Treasury bills, notes or bonds this explains it well. Currently in short paying off long term bond debt at 5% with short term 3% saves 2%. Rolling debt over is temporary with short term bills. It makes big news but the small $1.6 billion deficit being rolled over is a drop in the bucket from $37 trillion total debt that has been accumulated.
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