Why the Fed Watches the Debt Ceiling's New Math

On this episode of The Federal Reserve Podcast, Lucas and Luna dig into a number that just crossed a striking threshold: the U.S. national debt has passed $40 trillion, more than doubling in a decade. With the Fed Funds rate sitting at 3.63 percent and the ten-year Treasury yield at 4.74 percent, the cost of servicing that debt is starting to matter for monetary policy. Lucas explains the Fed's delicate dance — how rising interest payments constrain the Fed's ability to fight inflation, and why the central bank is now watching Treasury buybacks as a potential tool to ease market stress. They unpack the June PCE data showing core prices still creeping up, and what a 2.34 percent ten-year breakeven really means for inflation expectations. A focused look at how the bond market's message is shaping the Fed's next move, without the usual jargon. #FederalReserve #MonetaryPolicy #DebtCeiling #USDebt #TreasuryYield #Inflation #InterestRates #PCE #TreasuryBuybacks #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #FedWatch #BondMarket #FiscalPolicy #CentralBank #MacroEconomics Keep every episode free: buymeacoffee.com/fexingo