EPISODE · Jun 17, 2026 · 6 MIN
Why the Fed Funds Rate Is Stuck at 3.63
from The Bond Market Podcast with Fexingo: Treasuries, Yields, and Fixed Income for Beginners · host Fexingo
The federal funds rate has been pinned at 3.63 percent since May, despite inflation cooling and the economy slowing. Lucas and Luna examine why the Fed is holding steady, using the latest data on the 10-year yield at 4.47 percent, the 2-year at 4.07 percent, and the spread between them at 38 basis points. They discuss the Fed's dual mandate, the role of the interest on reserve balances rate at 3.65 percent, and how traders at Kalshi are betting on a more united Fed board under new chair Kevin Warsh. This episode explains the mechanics of the fed funds rate and what a prolonged pause means for bond markets and the broader economy. #FederalFundsRate #FedPause #InterestOnReserves #KevinWarsh #Kalshi #BondMarket #TreasuryYields #YieldCurve #10YearYield #2YearYield #FedPolicy #MonetaryPolicy #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #MarketAnalysis #RateLiftOff Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
The federal funds rate has been pinned at 3.63 percent since May, despite inflation cooling and the economy slowing. Lucas and Luna examine why the Fed is holding steady, using the latest data on the 10-year yield at 4.47 percent, the 2-year at 4.07 percent, and the spread between them at 38 basis points. They discuss the Fed's dual mandate, the role of the interest on reserve balances rate at 3.65 percent, and how traders at Kalshi are betting on a more united Fed board under new chair Kevin Warsh. This episode explains the mechanics of the fed funds rate and what a prolonged pause means for bond markets and the broader economy. #FederalFundsRate #FedPause #InterestOnReserves #KevinWarsh #Kalshi #BondMarket #TreasuryYields #YieldCurve #10YearYield #2YearYield #FedPolicy #MonetaryPolicy #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #MarketAnalysis #RateLiftOff Keep every episode free: buymeacoffee.com/fexingo
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Why the Fed Funds Rate Is Stuck at 3.63
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