Raising interest rates decreases inflation in the short term but that debt continues to increase every year.
In 2024 the interest expense surpassed defense spending for the first time in history.
the fed government already can't meet its obligations without borrowing.
so what that means is the Federal reserve has to print more and more money every year to compensate for these debt obligations of the federal government.
which is ultimately inflation
you're right there's other factors of play but this is the gigantic looming elephant in the room
In 2024 the interest expense surpassed defense spending for the first time in history.
the fed government already can't meet its obligations without borrowing.
so what that means is the Federal reserve has to print more and more money every year to compensate for these debt obligations of the federal government.
which is ultimately inflation
you're right there's other factors of play but this is the gigantic looming elephant in the room
https://fred.stlouisfed.org/series/CURRCIR