The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed

The US Treasury is managing U.S. debt by relying heavily on short-term rates, which are vulnerable to a hawkish Fed. The primary risk to the debt burden involves a sharp increase in short-dated yields if the Fed raises rates more than anticipated next year. This short-term debt gamble becomes riskier as the Fed shifts its stance, potentially impacting Bitcoin, stablecoins, and broader crypto markets given the current $39 trillion in total national debt.