Is the Fed Raising Interest Rates a Good Idea?

Inflation was not conquered in the 1980s by monetary policy alone. By setting interest rates that fit has a very strong impact on where inflation goes. When the Fed brings down inflation, that is going to be a boon to bondholders. So there's fiscal requirements for the Fed to be able to help. In fact, when we look at the debt and deficits that followed the 1980s, by the mid 1990s, the US government was awash in surpluses.