I believe everyone is looking at the Fed's rate hikes from the wrong perspective. It just spent years buying Treasury instruments on the secondary market and flooding the financial system with excess reserves in the process. Much of that excess money went into mergers, stock buybacks, and shareholder equity, all things that add inflationary pressure as much as do higher wages.

Not wanting to admit it screwed up, or intentionally screwed up the American economy to pad the pockets of the already wealthy, it is now trying to find the point in ROI that can attract that money back into secure Treasury instruments. It's easy to forget that higher rates are a big bonus for those who can invest without accruing debt.

A bond trader I know said that the current rates mean an additional $1.5 Trillion in money necessary to service the debt. That is money that goes straight to the top of the income spectrum and stays there without any benefit to the main street economy. Given the general econ ignorance in our Congress, this will also likely kick off the cries of our government "going broke" (not possible) and demands for cuts to safety nets, creating the other half of the vice jaws the working class is subjected to.