You are right. The Fed cant control long term interest rates, only short term. This is what puts them in a bind.
If interest rates head up, watch out. With so much debt out there, we cannot handle it. That is why the Fed, over the past decade, did all it could to keep interest rates down.
Even a move up another percent will likely crush things.
Glad to see someone else pointing this out.
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They will just start buying the bonds.. sell the bonds buy the bonds! odd how that works LOL
That is their only hope, buy the 30 and hope it keeps interest rates down. The question is whether it will work. They can control the 2 year but the 30 is tough.
They have to pull it off or their house of cards will be severely affected. If real estate goes, watch out.
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Japan is the way
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