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0 pointswhb074y ago0 comments

Going from 0-1% to 4-5% is massive I agree on that. But in the absolute, it’s still tiny and even a negative real interest rate.

The other stuff about the fed activities not influencing treasury rates is about as true as inflation being 2% avg for the last couple years.

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> But in the absolute, it’s still tiny

No, it's not; its from the global minimum to, while not the historic global maximum, a level clear on the other side of average.

> The other stuff about the fed activities not influencing treasury rates

No one said that. The relation historically is not such that going to a 4-5% fed funds target would double or triple debt service costs.

j / k navigate · click thread line to collapse

0 pointswhb074y ago0 comments

Going from 0-1% to 4-5% is massive I agree on that. But in the absolute, it’s still tiny and even a negative real interest rate.

The other stuff about the fed activities not influencing treasury rates is about as true as inflation being 2% avg for the last couple years.

> But in the absolute, it’s still tiny

No, it's not; its from the global minimum to, while not the historic global maximum, a level clear on the other side of average.

> The other stuff about the fed activities not influencing treasury rates

No one said that. The relation historically is not such that going to a 4-5% fed funds target would double or triple debt service costs.

j / k navigate · click thread line to collapse