CUT RATES NOW!
A patriotic Federal Reserve should put the United States first and cut rates.
The Federal Reserve’s job is maximum employment and price stability.
That mandate was written for the American people, not for foreign bondholders, not for the convenience of governments that fund themselves in dollars, and not for a global audience that likes high U.S. rates when it is convenient and complains when it is not.
When public debt sits near 100% of GDP—the first time that debt held by the public has reached that wartime scale since the aftermath of World War II—and when net interest is already on track to exceed $1 trillion a year, rate policy is no longer a seminar. It is a national-security and household-budget question.
Interest is not an abstract line in a spreadsheet. In fiscal 2025 the United States spent about $970 billion on net interest—more than defense in some comparisons, and a bill large enough to crowd out ships, roads, veterans’ care, and tax relief.
CBO and other official trackers project that interest will keep climbing if the stock of debt stays high and the average coupon stays high. Every extra basis point on a rolling mountain of Treasuries is money that does not stay in American paychecks, American factories, or American readiness.
A central bank that treats that arithmetic as someone else’s problem is not independent in a noble sense. It is indifferent. Literally, think about being in debt, on a personal level and you go to the bank and ask it to lower your interest payment, ALL WHILE the bank has NO PROFIT mechanism… it is literally working with you!
Why would the bank that decides how much the GOVERNMENT pays in interest not lower the rate?
High policy rates were sold as medicine for inflation. Medicine that bankrupts the patient is not medicine. Households refinance cars and mortgages at the rates the Fed sets in motion. Small firms roll working-capital lines. The Treasury rolls trillions of notes.
Foreign official accounts and private funds that parked cash in U.S. paper because American rates were the highest “safe” yield in the world have been the beneficiaries of a policy that extracts more from U.S. taxpayers than it returns in domestic growth.
That is not a conspiracy. It is how a reserve-currency system works when the issuer keeps real rates elevated while its own fiscal position deteriorates.
A patriotic Fed does not pretend the United States is a laboratory. It asks a simpler question: does this path raise American employment and keep American prices from exploding, or does it mainly service a global carry trade?
Maximum employment is not a slogan for Wall Street. It is factories running, young people hired, and communities that do not hollow out because the cost of capital was set for Zurich and Singapore.
Stable prices matter. So does not transferring an ever-larger share of the federal budget to coupon payments that, in part, leave the country.
Lower short rates reduce rollover costs as debt matures. They ease credit for builders, manufacturers, and first-time buyers. They also reduce the incentive for other countries to treat the United States as an ATM: borrow cheap at home, park funds in high-yielding Treasuries, and export the adjustment onto American workers.
“Think only about the United States” is not isolationism. It is the job description. Congress did not charge the FOMC with maximizing foreign reserve managers’ income.
It charged the Fed with American jobs and American prices.
When debt and interest have returned to wartime proportions in peacetime, the patriotic reading of that charge is to stop treating high rates as a virtue independent of who pays them.
Lower the policy rate.
Let the Treasury refinance cheaper. Let credit reach the domestic economy first.
Then judge the result by American employment and American grocery bills—not by applause from capitals that like our rates high and our market open.
Best Regards,
Lior Gantz
President, WealthResearchGroup.com
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