The Fed is in a rate trap due to the high national debt. They can’t hold rates high for long without causing a huge cost to service the debt, but every time they lower rates they cause a new asset bubble. Our boom/bust cycles are shorter and sharper these days and we are getting to a point where there is no happy medium.
All there is left is to await financial collapse so we can start all over again. Of course, the transition will be hell. I just hope and pray that transition comes after I am dead and buried.
That's not really a Federal Reserve issue. Debt service is a function of the rates on U.S. Treasury bonds, and those are even more concerning than what Federal Reserve Chairman Powell does or doesn't do with the Federal Funds Rate.
Both 20-year and 30-year U.S. Treasury rates passed the 5% threshold yesterday. If my information is correct, these rates are now higher than they've been at any time since 2007.