Fed sets the rate. However, if the rate is unreasonable it will destroy the Fed. The Fed is ‘reacting to’ government overspending, that’s what’s going on. Under Trump, they raised rates for political reasons, IMHO, now they are raising rates to combat inflation. They don’t want runaway inflation because the debt and money they get back, becomes useless. Now, they are raising rates for self protection. Frankly, the rate wouldn’t be an issue if the National
debt wasn’t out of control.
Raising interests rates to crash the economy to stop inflation is pure F-—ing EVIL!!!