MacroGlide on Instagram: "Goldman Sachs and other big banks often make money by borrowing cheaply from the Federal Reserve and using that liquidity to buy U.S. Treasuries, capturing what’s called the “spread.” Here’s how it works in simple terms: when the Fed sets very low short-term interest rates, banks can access funds at those rates, often close to zero. They then use that money to buy Treasuries, which pay a higher yield. For example, if Goldman can borrow at 0.25% from the Fed and buy a 10