The Federal Reserve’s efforts to combat inflation by maintaining higher interest rates are exacerbating the national debt. Although inflation has decreased since the Fed raised rates to a two-decade high, officials remain concerned about the pace of price increases. Higher interest rates mean the federal government must borrow money at greater costs, contributing to rising deficits. Projections indicate that interest payments on the national debt could surpass defense spending in the coming decade. The Congressional Budget Office forecasts that public debt, currently over $27 trillion, will grow from 99% of GDP in fiscal 2024 to 122% in ten years. Experts note that while government spending is a primary driver of the debt increase, the Fed’s high interest rates also play a significant role.