How The Fed Funds Rate Rewires Treasury Costs

The National Debt Podcast with Fexingo: Treasury, Borrowing, and Long-Term Fiscal Outlook · Oct 30, 2026 · 10m · transcript

We are looking at the specific mechanics of how the Federal Reserve’s current policy stance is quietly reshaping the cost of servicing the national debt. With federal debt total sitting near thirty-nine point five trillion dollars and the deficit widening to almost two trillion dollars for the fiscal year, the interest burden is no longer a background noise—it is the primary driver of future fiscal constraint. In this episode, we drill into the spread between the ten-year Treasury yield and the Fed Funds effective rate to understand why borrowing costs feel sticky even as long-term yields…