They have to raise rates because of totally an incompetent and unproductive delivery system and business management policies.
The way they are running it is scatter brained...
But their ESG scores are lookin' real good!
That’s pretty much my take. In my line of work, inflation has been mostly driven by lack of supply of goods, not so much by increases in demand. Then made worse by gas prices, oodles of government spending, and now labor price hikes will increase demand putting a floor on inflation for a while to come. Month over month inflation rates may moderate but year over year number is going to take a while to see meaningful retreat.
Supply chain issues are the result of worldwide “lockdown” limiting supply of goods. Throw in energy prices and wage increases for what’s driving service sector inflation.
Powell pretty much said he wants to send us into a recession - he expects and wants housing prices to drop and unemployment to rise.
They don’t HAVE to raise interest rates.