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SE IL | Yes very much so. This is also why the recent doubling of interest rates slowed things down a little but not to the effect some thought it would, because they didn’t stay there long enough for the majority of debt to get repriced at that higher level. Most debt now is fixed for 5 or 10+ years. Only new debt was priced higher and for a year it wasn’t hard for most to hold off on new debt or plan to reprice it in a couple years. That opportunity has now came. In total though as the Fed points out, rates help control th velocity of money, but nothing they can do about federal deficit spending which is the true cause of inflation. | |
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Fighting inflation