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Message
re: I wonder how extravagant the remodeled Federal Reserve building is
Posted on 7/17/25 at 3:02 pm to RobbBobb
Posted on 7/17/25 at 3:02 pm to RobbBobb
quote:The rate the Fed raises or lowers is the overnight fed funds rate.
This is why they cant lower the rates
That rate is the interest rate commercial banks pay/charge each other for overnight loans. The Federal Reserve does not collect any interest from fed funds.
quote:The Fed is not on the Federal government's (taxpayer) budget.
Someones got to come up with the $3B
The Fed generates its own revenues from what it charges commercial banks for services and loans provided to those banks, which include both domestic banks and certain foreign banks.
Plus it collects interest on treasury securities it purchases just like any investor does, including me.
The costs of the building renovations are paid for from the Fed's own pockets not by taxpayers.
2
Posted on 7/17/25 at 3:04 pm to VoxDawg
I assume their money comes from the same place as the federal government's money comes from....... taxpayer's pockets?
Posted on 7/17/25 at 3:06 pm to LSURussian
quote:
The Fed generates its own revenues from what it charges commercial banks for services and loans provided to those banks, which include both domestic banks and certain foreign banks.
Do they collect more when the rates are higher?
Posted on 7/17/25 at 3:08 pm to lake chuck fan
quote:You assume incorrectly.
I assume their money comes from the same place as the federal government's money comes from....... taxpayer's pockets?
Posted on 7/17/25 at 3:09 pm to LSURussian
quote:
"There's no new marble," Powell told members of the Senate Banking Committee. "There's no special elevators. They're old elevators that have been there. There are no new water features. There's no beehives and there's no roof garden terraces."
Ummm... for $2.5 billion, there darn well should be.
Posted on 7/17/25 at 3:22 pm to RobbBobb
quote:They do on Treasury bonds but the Fed does not control rates on Treasury bonds.
Do they collect more when the rates are higher?
Treasury bond yields (rates) are determined by an open auction process administered by the U.S. Treasury Department.
Sometimes if the Federal Reserve's Board determines Treasury yields have gotten too high and might impede the countries economic condition, the Fed will buy longer term Treasury securities.
By buying T-securities currently owned by commercial banks, liquidity is injected into the banking system which has the effect of lowering interest rates on bonds, and, indirectly on mortgage loans and banks' prime rate loans.
That's what the Fed did in the "Great Recession" of 2008/2009 and during the beginning months of the COVID pandemic.
By law, the Fed is required to return its profits to the U.S. Treasury Department each year which makes the Fed a net payer to the government and not a net expense on the government.
Posted on 7/17/25 at 3:36 pm to stout
Until the FEDERAL RESERVE is ABOLISHED
WE are all FINANCIAL SLAVES
WTFU
WE are all FINANCIAL SLAVES
WTFU
Posted on 7/17/25 at 3:37 pm to stout
It's the Creature From Jekyll Island ... and it's hangry.
Posted on 7/17/25 at 4:18 pm to LSURussian
quote:
They do on Treasury bonds but the Fed does not control rates on Treasury bonds.
Are treasury bonds affected by interest rates cuts?
Here, since you seem to not want to be open about the facts, I'll help you
quote:
Additional Treasury supply will need to be absorbed by investors in order to fund the growing deficit. To avoid investors demanding higher yields, there would need to be some offsetting force, such as weaker economic growth, softer inflation, or Federal Reserve interest rate cuts.
Posted on 7/17/25 at 4:41 pm to RobbBobb
I've already said the Fed can lower rates on t-bonds by buying them from commercial banks in the secondary market.
But lowering overnight interest rates in the fed funds market has very little impact, if any at all, on the 10 year and longer bonds.
In fact, if investors believe that by the Fed lowering overnight rates it may cause inflation to increase, rates on T-notes and T-bonds often go up, not down.
That is exactly what happened last September, November and December when the Fed lowered overnight rates three times.
When the Fed lowered overnight rates in September, 2024, the interest rate on 10 year bonds was around 3.7%. After the Fed lowered overnight rates in November and December, the 10 year bond interest rate rose to just under 4.8% in January.
Even now the 10 year rate is still about 4.5%. So tell me again how the Fed lowering rates reduces T-bond rates...
It's obvious your intent is to be confrontational over something that's not debatable. Good luck with that.
Why didn't you post a link to the quote you posted? It sounds like something straight out of ZeroHedge or thegatewaypundit, the two worst sources of financial information. The create financial fear porn to stay in business.
But lowering overnight interest rates in the fed funds market has very little impact, if any at all, on the 10 year and longer bonds.
In fact, if investors believe that by the Fed lowering overnight rates it may cause inflation to increase, rates on T-notes and T-bonds often go up, not down.
That is exactly what happened last September, November and December when the Fed lowered overnight rates three times.
When the Fed lowered overnight rates in September, 2024, the interest rate on 10 year bonds was around 3.7%. After the Fed lowered overnight rates in November and December, the 10 year bond interest rate rose to just under 4.8% in January.
Even now the 10 year rate is still about 4.5%. So tell me again how the Fed lowering rates reduces T-bond rates...
It's obvious your intent is to be confrontational over something that's not debatable. Good luck with that.
Why didn't you post a link to the quote you posted? It sounds like something straight out of ZeroHedge or thegatewaypundit, the two worst sources of financial information. The create financial fear porn to stay in business.
Posted on 7/17/25 at 5:18 pm to LSURussian
quote:
Why didn't you post a link to the quote you posted? It sounds like something straight out of ZeroHedge or thegatewaypundit, the two worst sources of financial information. The create financial fear porn to stay in business.
You seem awfully one sided about the Fed. Its a US Bank analysis, on their website
quote:
Bill Merz, head of capital markets research with U.S. Bank Asset Management Group
Also supported by this Treasury analysis
LINK
Higher interest rates eventually lead to more Fed fees. Yes or No?
Because in 2022 when interest was near zero, the Fed ended up $20B down. So they stopped sending money to the Treasury until they could rebound. How did they start the rebound? They began raising rates to around 5%, before lowering them to help the DIMs at election time
Posted on 7/17/25 at 5:41 pm to VoxDawg
Posted on 7/17/25 at 5:44 pm to LSURussian
quote:
Plus it collects interest on treasury securities it purchases just like any investor does, including me.
Except the Fed isn’t making any money on its securities for the past 3-years under Too Late’s leadership.
Posted on 7/17/25 at 5:45 pm to boogiewoogie1978
quote:
The Sphere
The Sphere is pretty impressive. I am sure they can afford it with how expensive Las Vegas is now a days.
Posted on 7/17/25 at 5:53 pm to stout
*Update*
Rep. Luna has just referred Too Late Powell to the DOJ for criminal prosecution for lying to Congress regarding the Taj-Ma-Powell boondoggle.
Rep. Luna has just referred Too Late Powell to the DOJ for criminal prosecution for lying to Congress regarding the Taj-Ma-Powell boondoggle.
Posted on 7/17/25 at 7:24 pm to Riverside
quote:Why not? Link?
Except the Fed isn’t making any money on its securities for the past 3-years
Posted on 7/17/25 at 7:29 pm to VoxDawg
I bet if .01% came out of the bureaucrats salaries, they would become sane.
It's so easy to spend someone else's money.
It's so easy to spend someone else's money.
Posted on 7/17/25 at 7:34 pm to Knight of Old
No bidets in the budget?! They need an additional 500 million then.
Posted on 7/17/25 at 7:40 pm to LSURussian
quote:
Why not? Link?
quote:
The Federal Reserve ran an operating loss of $77.6 billion last year, the second straight year of large losses.
quote:
Until 2022, the Fed almost always turned a profit, and it often returned hefty sums to the U.S. Treasury last decade when interest rates were low. But over the last two years, when rates were high, the central bank’s costs exceeded its income due to some complex monetary plumbing it uses to set short-term interest rates.
WSJ
Here you go, Trump Superfan!
Posted on 7/18/25 at 2:49 pm to BabyGumbo
Bingo
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