How The Fed Funds Rate Rewires Treasury Costs

The National Debt Podcast with Fexingo: Treasury, Borrowing, and Long-Term Fiscal Outlook · Oct 13, 2026 · 10m · transcript

With the ten-year Treasury yield sitting at five point two two percent and total federal debt nearing thirty-nine point five trillion dollars, the cost of servicing that debt is becoming a structural headwind. Lucas and Luna explore how the Federal Reserve’s current policy stance creates a unique drag on the federal budget, distinct from simple market volatility. They break down why interest payments are now consuming a larger slice of discretionary spending, forcing difficult trade-offs in fiscal policy. This episode examines the mechanics of borrowing costs in a high-rate environment and…