DiabloWags said:
oski003 said:
DiabloWags said:
oski003 said:
DiabloWags said:
Can any of the Trumpanzees tell me how the U.S. would save a TON of money on the interest expense of our National Debt if the Fed lowered rates by 3% points like Trump wants?
This is the DUMBEST question of the ENTIRE YEAR! However, I will entertain it.
I am not a Trumpanzee, but, if the government financed or borrowed at lower interest rates, they'd pay less interest. Interest rates do generally base themselves on the Fed rate. Happy to help l, even if this is one of the DUMBEST questions EVER.
Like Donald Chump, thank you for once again showing how terribly unsophisticated and ignorant you are when it comes to the financial markets and how our NATIONAL DEBT is impacted by market participants and the Fed.
Your answer is an EPIC FAIL for obvious reasons.
Perhaps someone else here like "WifeisaFurd" can help explain why you are so terribly WRONG again.
lol
Again, here is AI Overview, which most people under 90 know how to use:
Yes, Federal Reserve interest rate changes can affect the amount of interest paid on the national debt, though it's not the sole determining factor. The Federal Reserve's federal funds rate influences short-term interest rates, which in turn affects the interest paid on some government debt. However, the national debt is comprised of a mix of short-term, medium, and long-term Treasury securities, and the interest rates on these are also influenced by market factors and investor demand.
Again, it doesn't appear that you are informed or know what you're talking about.
That must be why you are relying on Artificial Intelligence.
Or, perhaps there is a READING COMPREHENSION problem at work here which I have found you to fall prey to on many occasions. - - - Here, let me help you.
I'm talking about the interest expense on our NATIONAL DEBT.
Not short-term rates that impact credit cards, auto loans, etc.
How would lowering the Fed Funds rate by 3 percentage points wind up impacting our NATIONAL DEBT?
Perrhaps there is a READING COMPREHENSION problem at work here which I have found you to fall prey to on many occasions. - - - Again, let me help you.
Here is AI Overview, which most people under 90 know how to use:
Yes, Federal Reserve interest rate changes can affect the amount of interest paid on the national debt, though it's not the sole determining factor. The Federal Reserve's federal funds rate influences short-term interest rates, which in turn affects the interest paid on some government debt. However, the national debt is comprised of a mix of short-term, medium, and long-term Treasury securities, and the interest rates on these are also influenced by market factors and investor demand.
Here's a more detailed explanation:
Federal Reserve's Role:
The Federal Reserve (the Fed) primarily influences short-term interest rates through its monetary policy tools, including setting the federal funds rate.
Impact on Short-Term Debt:
Changes in the federal funds rate directly impact the interest rates on newly issued short-term Treasury securities.
Influence on Longer-Term Debt:
While the Fed's actions can influence longer-term rates, these are also affected by other factors like market expectations about inflation, economic growth, and investor demand for government bonds.
National Debt Composition:
The national debt isn't solely composed of short-term debt; it includes a variety of Treasury securities with different maturities. The interest rates on these securities can vary based on their maturity and other market conditions.
Rising Interest Costs:
As interest rates rise, the cost of servicing the national debt increases, especially if a significant portion of the debt is tied to short-term instruments that need to be refinanced at higher rates.
Vicious Cycle:
Rising interest rates, coupled with a growing national debt, can lead to a situation where a larger portion of the federal budget is allocated to interest payments, potentially crowding out other government spending priorities.
