Doesn't increasing rate increase governments debt which is already at an all-time high?
well, I do agree with your analogy. An increase in the price of commodities redirects people's spending habits (and they are not neccearily saving). Here in Nigeria, inflation is at an all-time high. People can barely afford certain luxuries anymore and it disturbing a lot of businesses and industries.
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Raising rates could apply to the servicing of debt. What is issued is locked in. However, since governments arent going to stop, issuing new debt would be at a higher rate, raising their servicing costs.
However, that is if rates go up in the market. Looking back, the last two times the Fed went down this path, 2013 and 2018, rates went up for a while then went down.
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