When annual interest payments reach massive levels (such as 1.1 trillion), market forces push interest rates upward because investors demand higher compensation for loaning money during economic uncertainty, which simultaneously drives bond prices down; however, central banks retain the authority to counteract these market pressures through monetary policy interventions.
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Can the Fed Raise RatesAñadido:
There is no way they can start raising rates with annual interest running 1.1 trillion and rising. Well, yes, I agree.
I don't think I don't think the market is right that they're going to be raising interest rates. The market is pushing interest rates up right now because of all all all sorts of reasons, mainly because of what you're talking about. Like there's no way out of this mess right now, and if they don't do anything, we need we need to get compensated with a lot more interest for for loaning money. So, that pushes the price of bonds down and pushes rates up. They can push this down though through policy, and I think they will, and I think they will have to.
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