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That's an interesting point. The 2-year yield did drop noticeably on April 3rd, the day after the tariffs were announced. Do you think the Fed did that to offse
by leereeves 2y ago
That's an interesting point. The 2-year yield did drop noticeably on April 3rd, the day after the tariffs were announced. Do you think the Fed did that to offset the impact of tariffs?
- ac29 2y agoThe Fed doesnt set the rate of the 2 year or any other treasury. They effectively put a floor on the price of the shortest dated treasuries by setting the overnight rate, but the longer dated the treasury, the less effect the federal funds rate has on it.