This is a not-so-smart analysis. The market doesn't think that inflation number will be sustained.
However if it does sustain, the $15,000,000,000,000 in debt maturing in less than 5 years will be very hard to refinance at the same interest rates.
However if it does sustain, the $15,000,000,000,000 in debt maturing in less than 5 years will be very hard to refinance at the same interest rates.
From the article:
> For the first four months of the 2022 fiscal year that started Oct. 1, the Treasury reported a deficit of $259 billion, a 65% decline from the year-earlier deficit of $736 billion.
At $120B a month basically the entire deficit is being printed away.
Though you're right that Fed is partially monetizing deficit spending, that money gets reabsorbed over time through coupon payments.
However, Fed typically will repurchase to keep balance sheet stable. Hopefully they actually do QT like they're saying to start reducing the balance sheet