Interest on federal debt owned by the US private sector is fiscal stimulus, because it is net expansive for private balance sheets. Likewise, when the federal r

Interest on federal debt owned by the US private sector is fiscal stimulus, because it is net expansive for private balance sheets. Likewise, when the federal reserve holds treasuries and remits the interest back to the treasury it’s draining reserves from the economy. While out of control high interest rates have serious drawbacks, there are definitely solid arguments that rewarding savers with a higher safe return than the current 0.5-2% available now will benefit the people.