Comment by fallingknife

Raising interest rates has nothing to do with the 2022 war. If it did, rates would have come back down. Interest rate increases don't help with supply/demand driven price spikes. They do help with money supply and aggregate demand driven inflation, which was the cause of our recent inflation (that started way before Russia invaded Ukraine). The war was a convenient excuse because it deflects responsibility.

And remember when they first said inflation was "transitory" and caused by supply chain issues from the economy reopening after covid? They didn't raise interest rates then because, like I mentioned above, interest rates don't help with supply shocks. If they did, the Fed would have raised rates then.