Comment by xk_id

Raising rates is a very poor instrument for fixing supply-driven inflation. Even if it forces suppliers to temporarily lower their prices, as soon as rates are lowered again and economic activity picks back up and demand returns, inflation will return with a vengeance too. Destroying demand does nothing to fix the supply chain problems behind current inflation (which you already mentioned: war, energy, deglobalisation, china lockdowns etc). It’s a pointless, painful exercise and it’s probably being done by the fed only to maintain the appearance of fulfilling their expected role. The truth is the fed is powerless and cannot fix the problem.