Euros & Dollars: U.S. Debt Cost Bigger than National Defense
The U.S. Treasury keeps selling a lot of short-term, expensive debt when long-term debt is demonstrably cheaper. Why?
The U.S. Treasury keeps selling a lot of short-term, expensive debt when long-term debt is demonstrably cheaper. Why?
Many analysts think that today’s interest rates are the exception and that rates should always be low. History tells a different story.
Every time there is a disturbance in the market for U.S. debt, the American economy inches closer to a full-scale debt crisis. We just moved another inch or two.
Despite differences in inflation rates and macroeconomic trends, many central banks make their policy decisions based on what the Federal Reserve does.
European interest rates rise and fall closely with American rates. This can be good for Europe, but it can also be bad, especially if America is hit by a fiscal crisis.
After months of falling, U.S. interest rates are rising again. There is no apparent economic reason for this, which suggests that investors are worried about government solvency.
Donald Trump keeps criticizing the Federal Reserve for its interest rate policies. But if he gets what he really wants, he will make inflation great again.
The Federal Reserve is not eager to cut interest rates, but when they get around to it, they will have to pursue two policy goals at the same time—and one goal excludes the other.
The Federal Reserve has decided to keep its policy-making federal funds rate unchanged for now.
The Federal Reserve meets on Wednesday. Here is why they won’t increase the interest rate.