Lower rates bring in less NEW offshore fiat because there's less yield to attract them. Its an equilibrium of diminishing return, not a signal of weakness, since the rates can only be low if the dollar can command it in the first place... like everyone wishes they could get 2% risk free on Bitcoin
Correct the fed doesn't control the long end, but the funds rate on the short end trickles out because its a multiple of cash in the system to bid those rates, and short term bills are effectively cash in moneymarkets etc.
I think the stables are how they get people in other countries included in what is effectively the US money market, even if the foreign government doesn't like it.
Lower rates bring in less NEW offshore fiat because there's less yield to attract them. Its an equilibrium of diminishing return, not a signal of weakness, since the rates can only be low if the dollar can command it in the first place... like everyone wishes they could get 2% risk free on Bitcoin
Correct the fed doesn't control the long end, but the funds rate on the short end trickles out because its a multiple of cash in the system to bid those rates, and short term bills are effectively cash in moneymarkets etc.
I think the stables are how they get people in other countries included in what is effectively the US money market, even if the foreign government doesn't like it.