I would just like to confirm my understanding of how the FED controls interest rates. In my view there's no such thing as changing an interest rate. Because rate/yield is just an effect of price action.
So when the FED 'cuts rates', it starts buying more bonds. When the FED does a rate hike, it sells bonds. It's just simply supply and demand affecting yield.
So also the explanation of let's say 'a new bond being in town' with a higher yield is not right in my view. In general there's a dumping of bonds increasing yield over the board.
Can anyone confirm?