The Senate has rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.
It will, in the sense that the US Treasury is now shifting massive amounts of its debt burdern from longer term bond issuance(5y, 10y, 30y), to shorter term (3m) debt, and then just trying to keep refinancing it, every 3 months.
The Federal Reserve has now lost the ability to actually set bond market intetest rates.
They can raise or lower the interest rate, the bond market is currently laughing at that and setting their own interest rates.
So, what that means is, the next government shutdown will result in even more economic destruction and chaos, even more things we have long taken for granted just disintegrating.
It will, in the sense that the US Treasury is now shifting massive amounts of its debt burdern from longer term bond issuance(5y, 10y, 30y), to shorter term (3m) debt, and then just trying to keep refinancing it, every 3 months.
The Federal Reserve has now lost the ability to actually set bond market intetest rates.
They can raise or lower the interest rate, the bond market is currently laughing at that and setting their own interest rates.
So, what that means is, the next government shutdown will result in even more economic destruction and chaos, even more things we have long taken for granted just disintegrating.