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This is a new regime called FISCAL DOMIMANCE. The US Treasury Department is essentially dominating over the Fed and the way they are doing so is by reducing its percentage of long term debt (US treasury bonds) and increasing its percentage of short term debt (US T-bills). Historically T-bills made up 15% to 18% of marketable debt. Today, T-bills make up 22% to 23% of that debt. What this means is that if the Fed raises rates tomorrow that when …
— ORIGINAL POST ·
Bessents move to swap long dated bonds for T-bills traps the Fed into not raising rates
· r/stocks
· Aug 22, 2026