The Fed funds rate is the interest rate that's really critical for keeping liquidity or the cost of debt going in the financial markets. When rates on your savings account are so low, what does that encourage people to do? It encourages them not to save. So they're going to go out and spend. At some point, it's the same thing with your bonds. You're getting no return for your bonds. That's when yields will rise. And that's when the Fed will lose control of the Fed funds rate. But as I said, if the yield in the 10-year treasury gets too high, the Fed will have to respond to that.
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