eli5 Where does all the extra money from fed interest rate hikes go?

Question

Especially regarding mortgage rates- folks are paying huge increases in monthly payments.
I’m assuming “to the government” but does it just get held somewhere?

In: 67

Answer 1

This guy has the best explanation I’ve seen: [Saifedean at Bitcoin 2022](https://youtu.be/0YolMBHCRis)