[finnbow]

Originally Posted by whell

Yes, they're inter-related, deficit becomes debt, all good. Powell's presumed course of action - increase rates to drive down spending and thus drive down employment thus curb inflation involves increasing rates on debt, and has no short term effect on deficits (except to the extent that budgeted dollars are consumed retiring debt or paying interest on the debt). Which is why I was wondering why you were bringing up deficits.

Interest rates are the only tool in the Fed toolbox. Bitching about them using rate hikes to battle inflation is like criticizing a Marine rifleman for using his rifle.