“In an economy, prices are signals. Interest rates are the price of money, and they give the authorities a clue about how to manage the federal budget. If interest rates are too high, the market is telling the government it is spending too much. If interest rates are too low (like they were a few years ago), the markets are telling the government that it is spending too little (if such a thing is possible).
Right now, the government is spending too much. If the central bank were to cap the interest rate, its usefulness as a price signal would disappear. The government can borrow an unlimited amount of money with no immediate consequences but with one big long-term consequence: inflation.”
https://reason.com/2026/01/06/is-this-the-end-of-american-capitalism