Skip to content

If you think you’ve been targeted by a scam, get information and assistance from the AARP Fraud Watch Network Helpline.

Content starts here

CLOSE ×

Red Membership Card

LIMITED TIME OFFER: Labor Day Sale!

Join AARP for just $9 per year with a 5-year membership and get a FREE Gift!

Get instant access to members-only products, hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

Who determines how much interest is paid on the national debt?

National Debt Glossary: Key terms for understanding America's financial crisis

By

AARP

Comments

Published November 23, 2011

No one. Interest is the price of credit and, as in any competitive market, prices are determined by supply and demand. The Federal Reserve — the nation's central bank — auctions the securities on behalf of the U.S. Treasury. The securities go to the highest bidders.

SOURCE: Federal Reserve Bank of New York

See all terms in the National Debt Glossary

Frequently Asked Questions: National Debt

See all questions about the national debt. >>

%{postComment}%

Unlock Access to AARP Members Edition

Join AARP to Continue

Already a Member? Login

Benefits Recommended For You