As the post Trump retweeted says (it also calls it a 'secret plan'):
"Why is he doing this? To push cash into Treasuries, which forces the Fed to slash rates in May and those lower rates give the Fed the ability to finance trillions of debt very inexpensively".First of all, the Fed doesn't finance anything. The Treasury Department does. The Fed also isn't forced to do anything and I would bet against a rate cut in May.
It's crackpot stuff.
It simply doesn't work like that.
Yes, if you keep rates lower then over time you will get lower borrowing rates but we're coming from a long-term period of very low rates so whether that's refinanced at 4.2% or 4.5%, it's still going to be higher. To illustrate, the 10-year notes that are maturing this year were issued in a range of 1.6% to 2.5%.
In the broader economy
In the oil market, I strongly suspect that sub $60 oil will lead to less US drilling and, ultimately, higher oil prices. So bringing down oil prices in the short-term could very well lead to higher prices later.
This article was written by Adam Button at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( The idea the US could refinance its debt is plain stupid )
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