Money For the Rest of Us · Wednesday, August 26, 2026
Recent Federal Reserve Open Market Committee minutes indicate a shift in the U.S. government debt market, with a decrease in official public sector buyers and an increase in private sector participation. This change is happening as private entities, such as AI companies, are issuing significant amounts of debt.
“The recent minutes for the Federal Reserve Open Market Committee, the staff pointed out that the the makeup of the government debt market, who's buying it? It's less official public sector and more private sector.”
“Which means if AI companies, the hyperscalers are issuing hundreds of billions of dollars of debt per year, that is competing with US government bond because the U.S. government is also issuing hundreds of billions of dollars of debt each year.”