The Fed follows the one year

If you want to know the Fed rule it is simple,  rescale the depositers to match government flows, done by flowing the one year as closely as possible. The Fed is fixed corridor, it just move both lending and deposit rates synchronously, matching the Treasury flow.

The Fed is all fiscal theory of banking, the Fed tunes us to government needs, like a tax collector.

My plan is to say, OK, fine that is what central bankers do. But let us slow the seigniorage rate to 15 years, and double the transaction rate of the monetary cycle, make them match better. Do one deal, siegniorage and back due monopoly fees together, accounted every 15. It is there, it is history, it is Constitution, we do it, let us do it better.  15 years is plenty of time to discover all our blunders from the past.

Ten year now at 1.68%

I guess that was some unpleasantness in Asia.  The 2-10 slope is 12 basis points, the bond dealer will be late to work. We have a bond market planning for some down turn it seems.