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Pedro's thinking about buying U.S. savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do this? Stocks on Wall Street may be doing quite well, encouraging Pedro to invest there instead of buying securities The U.S. Treasury might refuse to sell securities to Pedro, because it does not have bonds to sell. The Federal Reserve could raise the price of securities, to encourage Pedro to buy other things instead. Banks might raise their interest rates
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