Raising interest rates won't be easy — up to 30% of the federal budget could be spent servicing the debt. From Drunkenmiller's interview in May of this year: "

Raising interest rates won't be easy — up to 30% of the federal budget could be spent servicing the debt. From Drunkenmiller's interview in May of this year: "[Drunkenmiller] projects that if yields on the ten-year Treasury rise to the projected level of 4.9%, the government would be spending close to 30% of GDP each year simply paying back interest expense (compared to 2% last year) unless it monetizes the debt, which experts think is unlikely and Druckenmiller believes would have “horrible implications” for the U.S. dollar." [0] The Fed has less actions available than you expect. Either the Fed lets inflation run hot, or the Fed raises interest rates to combat inflation, wiping out discretionary programs from the federal budget. [0] https://www.forbes.com/sites/jonathanponciano/2021/05/11/billionaire-investor-druckenmiller-blasts-feds-radical-stimulus-policy-warns-it-risks-stock-bubble-blowing-up/?sh=529bbbd22fe8 https://www.forbes.com/sites/jonathanponciano/2021/05/11/bil...