Most alarming is that GOVERNMENT DEBT HAS INCREASED DUE TO THE HIKE IN INTEREST RATES.
Are you referring the current budget deficit the U.S. government has accrued rather than the national debt?
The answer to your question whether or not the hike in interest rates has slowed down the economy is NO. The rise in the basic federal interest rates from 1 to 1.25% was a very modest rise and it was the right thing for the Federal Reserve Bank to do to combat inflation. After three years of pumping an enormous of money into the economy to combat deflation, the Federal Reserve has tightening the money supply. If the country has maintained this policy has it had done in the 70?s; we would have been looking at a rapid increase in inflation. Not a good idea.
The simple solution to the budget gap problem (referring to my 1st paragraph) is raise interest rates dramatically, decrease the liquidity of money and increase the marginal taxes on individuals and businesses. Not a good idea when the economy needs to grow.
