The Role of the Federal Reserve in Inflationary Hikes

Inflation means that everything the prices of everything costs more. Demand begets higher prices and so forth, but we respect the narrow part of inflationary hikes Now that has to do with the structure of the banking system. As rates go higher the banks are going to be more incentivized to create more credit That's the big difference as rates go higher their interest margins increased rather than stay the same they increase because your funding costs are flawed at zero Because there's so many retail deposits. Think about the government now, right? Enormous enormous fiscal spending every year enormous interest rate bill what happens to that interest rate bill when rates go higher? The real government it explodes and explodes and basically escal