What do you think you mean by saying 'drives interest rates down'. It seems a leap to think the fed, the entity that establishes the interest rate, will react in the way you describe.
What do you think you mean by saying 'drives interest rates down'. It seems a leap to think the fed, the entity that establishes the interest rate, will react in the way you describe.
Common misunderstanding but the fed does not set rates on treasuries (bills, notes, etc) the primary instrument the government uses to finance its debts.
Those rates are set via auctions driven by the demand for safe haven returns on investments, particularly returns when equities are risky. As demand for treasuries (safety) goes up, the rates on those same treasuries go down.
The fed sets the interbank exchange rates, these influence treasury rates but are a very different thing.