Have you not been paying attention to what the Fed has been doing? Pardon my language but shoving cash up my asshole earns more than 1% these days.
In 2022, before most of the rate hikes, the trust fund earned $66.4 billion. This year’s high, and hopefully very temporary, interest rates aside, it’ll usually be around 2.5-3%.
I’m not sure what you think loss leading means or why you’re using it here, but governments storing reserve money earmarked for a specific purpose in their own bonds isn’t unusual or a bad thing. Should they stuff it under a mattress earning 0%? Should they risk it in the markets? Unsecured domestic bonds? Foreign bonds?
Have you not been paying attention to what the Fed has been doing? Pardon my language but shoving cash up my asshole earns more than 1% these days.
In 2022, before most of the rate hikes, the trust fund earned $66.4 billion. This year’s high, and hopefully very temporary, interest rates aside, it’ll usually be around 2.5-3%.
I’m not sure what you think loss leading means or why you’re using it here, but governments storing reserve money earmarked for a specific purpose in their own bonds isn’t unusual or a bad thing. Should they stuff it under a mattress earning 0%? Should they risk it in the markets? Unsecured domestic bonds? Foreign bonds?
Sorry, I must admit I’m not from the us and I may have been more talking/afraid for my local governments funds… Thanks for the great explanation tho!