In addition to bailing out the Treasury, it’s likely that the Fed lowered interest rates in order to stem the losses on its own bond portfolio as well. Whichever aspect you focus on, none of it is good news.
The “higher for longer” policy only lasted eighteen months.
The U.S. budget deficit reached $1.897 trillion in the first eleven months of the 2024 fiscal year, and annual interest costs on the public debt topped $1 trillion for the first time….Furthermore, in its own projections, the Treasury expected an increase of $16 trillion in government debt between 2024 and 2034. The Congress Budget Office estimates that the implementation of the Harris economic plan will result in a further $2.25 trillion increase in debt.
“political malpractice”
https://x.com/oilfield_rando/status/1838625558923448777