Fed likely to keep raising rates

Re:Fed likely to keep raising rates by jahewson on Thursday October 11, 2018 @11:04PM (#18198848)

Anyone who buys Treasury bills is paying that interest to the Fed. So banks, pension funds, social security, etc.

The Fed’s debt is made up of (other) Treasury bills which it purchased during QE using “printed” money.

If this makes your head spin, then you’ve probably understood it correctly.

[ Parent | on HN ]

Re:Fed likely to keep raising rates by taysic on Friday October 12, 2018 @12:45AM (#18199273)

So are you saying that if the Fed prints $x money, it gets back $x money + interest. It is using the interest to pay back the $x money... and then in theory it erases it from its balance sheet. What does it do with the excess money it collects?

[ Parent | on HN ]

Re:Fed likely to keep raising rates by ceejayoz on Friday October 12, 2018 @09:35AM (#18201290)

The excess goes to the Treasury. https://www.nytimes.com/2018/01/10/business/fed-profits-trea...

[ Parent | on HN ]

Re:Fed likely to keep raising rates by credit_guy on Saturday October 13, 2018 @12:41AM (#18206462)

Wait, if you buy a Treasury bill, you pay interest, rather than receive? Doesn”t sound right.

[ Parent | on HN ]