The only way to stop this inflation will be drastic cuts in government deficit spending as well as increased interest rates.
Correct...
And since cuts in government deficit spending are NOT POSSIBLE... an increase in interest rates will have no choice but to do all the heavy lifting.
Interest has been kept artificially low far too long.
While I do not disagree with that statement... it is water under the bridge and no part of current economics.
MANY low income people have benefited tremendously from low interest rates.
The number of first time home buys (especially minority represented demographics) set all time records under Trump's economic policy. Many of those same people will loose everything in the near future.
Yup, winners and losers with both high and low interest.
Low interest means investments other than bonds and traditional lending look more attractive; the stock market. This helps 401k and other retirement accounts. It is also easier to get out of debt. It means inflation, debtors pay back with inflated money, including the .gov....which also gets to take in more tax revenue. Inflation is often called the invisible tax.
Low interest means those with money can't make as much. It also means inflation, which hurts those living off pensions, SSI, etc. It means your bank account shrinks in purchasing power.