The Fed is not responsible for interest expense. They are not expected to manage to it. Their mandates do not encompass it. If you want them to alter monetary policy in response to the cost of interest, their mandates need overhauling and they should be involved in budget formation. I am not advocating for this, but this is how it must work. Otherwise, we must strip Fed of its independence the way we did in the 1940s and force them to control the curve. That time was a very different world from today.