The Federal Reserve partners with the US Treasury to manage issuance of GOVT. DEBT

The Federal Reserve partners with the US Treasury to manage issuance of government debt.

During a shutdown, the Treasury runs with limited staff and operations slow down. That makes debt auctions and cash management harder. (Partner banks sell US debt to the Fed, which is a private entity managed by partner banks)

If the shutdown drags on the Fed could face major turmoil in bond markets.

Do you understand yet?

Reposted @ t_mj

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