That's an excellent question...absolutely it does! Not many people seem to pay attention to this fact. Every year we have a multi-trillion dollar deficit in our

That's an excellent question...absolutely it does! Not many people seem to pay attention to this fact. Every year we have a multi-trillion dollar deficit in our congressional budget. To make up this difference, the treasury department has to sell bonds. As the FFR increases, so do the yields on treasuries. Our annual interest payments on federal debt is ~400B. That's over HALF our military budget for some perspective. If inflation proves to be sticky, what happens if bond yields get pushed up to 10% ? Well, now congress has to borrow at 10% interest. That next 1T+ deficient would cost our country an extra 100B+ per year in coupon payments...AND we still owe the principle on those bonds when they expire. In the volcker era, we had to push interest rates up to almost 20%. Our government has been incredibly irresponsible with managing our debt. Problem is fixing it seems impossible. We'd need to increase taxes AND cut social services. Can you imagine how painful that would be? Any politician who tried to tackle this issue would become the most hated person in America.