If the Fed were to allow interest rates to return to prerecession levels, the federal government would owe an additional one-half trillion dollars annually in interest payments. There are only three ways to come up with that much every year. Washington could raise taxes by about 16 percent across the board. The federal government could borrow more, effectively doubling its current budget deficits, and accelerating the growth of its already massive federal debt. Or it could cut spending by 14 percent across the board.