Will Trump Preside over the Wedding between the Fed & Treasury? And what would it mean for Markets?
リアクション
2026年09月20日
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The Fed and the Treasury are two separate institutions. One borrows and spends what Congress votes. The other sets the price of money. This week we walk through what each actually does, including how a Treasury auction works, why primary dealers have to bid, and how a rate decision reaches the real economy.
But the line between them is blurrier than most people think. The Fed's assets are Treasury paper. The government's cash account sits at the Fed. The interest paid on that paper comes back as remitted surplus. And the boundary itself was established by an agreement in 1951, not by the Constitution, which means it can be renegotiated if needed.
So...will the Fed & Treasury get married? All this and more on this week's episode of Milkshakes, Markets, & Madness.
MMM Episode 184 (September 20, 2026)
👉 Shop Individual Macro Research Reports - https://santiagocapital.com/shop
The Fed and the Treasury are two separate institutions. One borrows and spends what Congress votes. The other sets the price of money. This week we walk through what each actually does, including how a Treasury auction works, why primary dealers have to bid, and how a rate decision reaches the real economy.
But the line between them is blurrier than most people think. The Fed's assets are Treasury paper. The government's cash account sits at the Fed. The interest paid on that paper comes back as remitted surplus. And the boundary itself was established by an agreement in 1951, not by the Constitution, which means it can be renegotiated if needed.
So...will the Fed & Treasury get married? All this and more on this week's episode of Milkshakes, Markets, & Madness.
MMM Episode 184 (September 20, 2026)
