News for hackers. Stuff that matters.

A comment on Yield of 0% a First at 3-Month Treasury-Bill Sale. Parent comment

Re:Yield of 0% a First at 3-Month Treasury-Bill Sale by davvid on Tuesday October 06, 2015 @07:13PM (#10343094)
Not quite.. The Fed != The Federal Government. It's more like.. The Fed is issuing debt, and we (American taxpayers) are (the suckers) on the other side of the equation.
[ Parent | on HN ]
Re:Yield of 0% a First at 3-Month Treasury-Bill Sale by neffy on Tuesday October 06, 2015 @09:10PM (#10343552)
Actually, the Fed typically runs at a profit and pays it into the US Treasury.

http://www.federalreserve.gov/newsevents/press/other/2015010...

[ Parent | on HN ]
Re:Yield of 0% a First at 3-Month Treasury-Bill Sale by fiatmoney on Tuesday October 06, 2015 @09:53PM (#10343728)
They "run at a profit" because they make "interest income on ... U.S. Treasury securities...".

I.e., they are paying the Treasury with money they received from the Treasury, or from bonds guaranteed by the Treasury.

[ Parent | on HN ]