rrmhearts

The Fed cannot raise the FEDFUNDS rate enough

A higher FEDFUNDS rate (currently around 0%) causes higher rates on treasury yields.

Here is our "effective rate" (ER) we pay on the national debt. Currently around 1.9% and 22% of tax receipts go to paying this interest.
If ER goes above around 3%, interest payments are around 26% of US federal revenue.
If ER goes above around 5%, interest payments are around 43% of US federal revenue.

Inflation is at 7.5%, it is impossible to bring the FEDFUNDS to 7.5% (which would amount to 63% revenue).

Good luck, FED.

Clause de non-responsabilité

Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.