Why the Fed Rate Is Not Controlling Long-Term Borrowing Costs

Lucas and Luna dig into a puzzle that flummoxes the bond market: the Fed has cut short-term rates to 3.63 percent, but the 30-year Treasury yield sits stubbornly at 4.98 percent. They walk through the data—the 10-year at 4.46, the 2-year at 4.05—and explain why fiscal deficits, term premium, and foreign demand are overriding the central bank's signals. With the national debt at 38.5 trillion and debt-to-GDP at 122.6 percent, the conversation reveals how Washington's borrowing appetite is rewriting the rules of monetary policy transmission. A fresh angle for anyone wondering why mortgage rates and corporate bonds aren't following the Fed's lead. #FederalReserve #TreasuryYields #NationalDebt #TermPremium #FiscalDominance #BondMarket #MonetaryPolicy #FiscalPolicy #LongTermRates #YieldCurve #DebtToGDP #CentralBanking #InterestRates #Macroeconomics #Economics #FexingoBusiness #BusinessPodcast #TheNationalDebtPodcast Keep every episode free: buymeacoffee.com/fexingo