Central banks typically fight retail price inflation by raising interest rates. But again, if they do raise interest rates, the US government will have to refinance its maturing debt at higher rates. Think about this: if Treasury rates were only as high as they were in 2008 before the last crisis, the US government would have to pay more than $1.5 trillion each year just in INTEREST. Alternatively, if the Federal Reserve decides to ignore rising inflation, and keeps printing money to buy Treasury securities, then inflation will soar even higher. Either of these scenarios would be extremely destructive.
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