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#federal_reserve — Public Fediverse posts

Live and recent posts from across the Fediverse tagged #federal_reserve, aggregated by home.social.

  1. #^Podcast: The Rise of National Capitalism | Schiff Sovereign

    Few people understand how the Federal Reserve actually works— and frankly, I’m not sure the President or Treasury Secretary are among them.

    That’s not an insult, just based on what they say. Let me explain.

    Most people think the Fed sets “the interest rate” for everything—mortgages, car loans, 10-year yields. But that’s not how it works. The Fed only sets a very narrow rate—the overnight lending rate between banks.

    Everything else, from your mortgage to the government’s long-term borrowing costs, is determined by the bond market. And as America’s debt spirals past $37 trillion, the bond market—not the Fed—is in control.

    This misunderstanding matters. Because when Treasury Secretary Bessent says he’s going to “get rates down,” what he really means is printing money.

    That’s the only lever left: the Federal Reserve creates money electronically and uses it to buy government bonds.

    #podcast #Federal_Reserve #economics
  2. From this week's FOMC press conference:

    Washington Post: Your predecessors have warned that rising deficits are not good for the country. What will you say?

    Jerome Powell: The Federal government's fiscal path is unsustainable. The debt level currently currently isn't at existential levels,  but its trajectory is.

    It's not like problem isn't in plain sight, but no one does anything about it.

    #Federal_Reserve #debt