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Long-term interest rates aren’t set by the Fed, they’re market rates based on the Treasury’s demand for borrowing and investors’ demand for purchasing US govern
by tfehring 3y ago
Long-term interest rates aren’t set by the Fed, they’re market rates based on the Treasury’s demand for borrowing and investors’ demand for purchasing US government debt. If there were enough demand for zero-interest US government debt to support the Treasury’s borrowing needs, then the interest rate on that debt would already be zero.
I’m curious, how would you advocate for using the labor market directly as a stabilization tool?
- neilwilson 3y agoLook up Japan. Then tell me long term government debt rates are set by the market