infopocalypse on nostr

Newb question for all the finance people. As far as the US wanting lower interest rates to refinance the debt, do the rates have to stay low? Or could the Fed just do the gov't a favor and lower them, then a refinance, then raise them right back afterwards??
#asknostr #thefed #banking

VOLKER - Voice Of Logic Knowledge Experience & Responsibility · 70w

That would lead to a very sharp drop in the F'ED balance sheet because the low interest rate bonds lose value the second the higher yielding papers come out. It also has implications for the broader, secondary market but it's too late for me to think that through (midnight)