Interest on treasury bonds or federal reserve accounts can only come from new money. The Fed has no power to do anything but create money or sell money created

Interest on treasury bonds or federal reserve accounts can only come from new money. The Fed has no power to do anything but create money or sell money created by the treasury. All roads lead to the money printer. 1. When central banks raise interest rates, this means governments spend more on their interest payments. This translates into increased income for bondholders. Higher incomes lead to more consumer demand, pushing up prices. Similarly, banks benefit from higher interest payments from the Federal Reserve. In other words, the interest from the higher interest rates goes to someone in the economy, and their demand increases rather than decreasing. 2. Interest rates are a cost for businesses. When central banks raise interest rates, businesses pass this new cost on to consumers in the form of higher prices, which is inflation by definition. 3. Higher interest rates make it harder to start a business and harder to hold inventory. This reduces supply, leading to higher prices aka inflation. 4. Finally, MMT economists point to the fact that there is no empirical research at all showing that higher interest rates decrease inflation. In fact, the correlation runs in the opposite direction. The above points are taken from Additionally, the following points are taken made here https://www.reddit.com/r/mmt_economics/comments/wchq55/raising_interest_rates_to_fight_inflation/ https://www.reddit.com/r/mmt_economics/comments/wchq55/raisi...