The Fed rate always matches the 3-M Treasury.
That's because the Federal Reserve Corporation, which is just another name for the private Bank of NY, wants to steal as much money from the American public as possible. They have to. The Fed has a legally binding, fiduciary duty to their mostly-foreign shareholders to swindle US citizens.
Since the Fed only "lends" (against no backing deposits) for 30 to 60 days, the Fed rate should be less than the 3-Month Treasury. Let's call their excessive interest rate another tax on you, since your government is in bed with the private Fed, and that is what permits their banking monopoly.
"Huh?" says John Q, "I thought the Federal Reserve Bank of NY determined interest rates?"
No, that's wrong.
That any bank can arbitrarily determine the global rate for venture cash is, without a doubt, the dumbest thing I've ever heard. Not surprisingly, virtually every economics professor, consuming our valuable oxygen, believes this borderline-hilariousness bunk to their very core.
Interest rates are fully determined by global U.S. Treasury auction. Interests rates are set, exclusively, by Free Market action.
How could any sane person not realize that the global market determines the interest rate the people of planet Earth will accept for cash loans? One would almost have to incur a $half-million in legally unforgivable student loan debt, for an ivy league university indoctrination, to think otherwise.
Now, that having been said, the Fed does "set" rates to a minor degree; they either shave a little from the market rate--to encourage borrowing for arbitrage--or, they add a premium--to promote seizure of non-member bank assets via liquidity squeeze, resulting loan default, and ultimately, bankruptcy. Yes, every bank the Fed Bank of NY successfully kills rolls their assets up to the Fed, then piles new FDIC obligations on top of the American poor and middle class. New FDIC debt, in turn, requires more high-rate borrowing from the private Fed, further boosting Fed profits.
Question: How much of a premium is the private Federal Reserve Bank of NY charging, right now?
Answer: A whopping 0.25% above the market rate of 0.005%, and for only 1/3rd the term. You heard it right, the private Fed, who claims they exist solely to pay Americans unlimited heaps of cash, has their rate currently set 50x HIGHER than the market-determined rate for short term cash.
To rob your bank of liquidity, of course. Your local bank is effectively cut off from needed reserves if they must pay 5,000% too much. Thus, local banks have no choice but to stop lending; thus, asset prices plunge from cash starvation; thus, collateral you hold against a loan collapses in price; thus you go broke; thus, your bank goes broke; thus, non-member bank assets in liquidation roll up to the privately held, for-profit, mostly foreign-owned Federal Reserve banks; thus, your corrupt Bank of NY-owned President and Bank of NY-owned Congress insist that the private FDICorporation borrow more from the Fed Corporation Bank of NY.
And so, the Federal Reserve Bank of NY-engineered global depression unfolds...