Latest / The National Debt Podcast with Fexingo: Treasury, Borrowing, and Long-Term Fiscal Outlook
How The Fed Funds Rate Rewires Treasury Costs
Lucas and Luna dissect the mechanical link between the Federal Reserve's policy rate and the actual cost of servicing the national debt. With the Fed Funds effective rate holding near 3.63 percent in September 2026, they explore why the interest on reserve balances sits at 3.90 percent and how this spread affects the Treasury's borrowing strategy. The conversation moves beyond headline yields to examine the quiet friction in the banking system, using data from early 2026 showing total federal debt exceeding thirty-nine trillion dollars. Listeners learn how the interplay between the…
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