Government forcing the supply cost of food and energy higher combined with massive government debt fueled spending results in inflation that cannot be control by increasing interest rates. Without a significant change in government policies, the only result will be a substantially smaller, weaker economy, and most people in America poor and barely able to get by, if at all.
Example: eggs at Walmart last week $5.01/dozen.
Example: In two years, my cost of electricity has increased from $0.09/kwh to $0.182/kwh
Culling of vast flocks of heathy chickens and driving up the cost of electricity are both solely driven by government policies. No change in demand will effect those supply driven prices.
The bad news.
Nobody really knows if interest rate increases will cool inflation.
Interest rates were near zero for about 10 years, and so was inflation.
Then there is the money supply theory and more dollars buying fewer products . . . but we had rampant money creation for 10+ years . . . and no inflation.
Money is a substance created from nothingness by central banks. The CB’s decision in this is pure whimsy. How can such a substance be expected to define any sort of “law” in its behavior towards anything? Answer: it can’t.
The value of money is in the imagination of counterparties. Imaginary things should not be expected to respond to attempts to control them.