>>60564637The FED doesn't really dictate the rate, all debt the US has is on the open market and the rate is negotiable..
If the government wants to refinance ~[many money], someone has to show up on the auction and lend that money in exchange for the interest rate.
The FED can't just say "negative 10%".. no one (except of forced buyers) would be buying that.
currently, with inflation, the debt level and growing budget deficit.. and the tariffs. US treasury bills are not worth the same thing as treasury bills from Switzerland.. or Euro bills (a collection of countries - Germany, France, Netherlands, Austria, etc..)
Like the inflation is lower, the debt to gdp is lower, the economic situation is more stable - recall the biggest trading partner for the EU is China, and that relationship hasn't changed, only the relationship with the US has changed - and in the reverse the US has changed ALL it's relationship with other countries. Any company in the US that is importing a Coffee bean or a screw is gonna pay 10-50% on that.