[galaxyLogic]

I can see the logic behind raising interest rates to fight inflation. I can choose to buy a new bicycle today, or put the money to bank. If interest rates are higher I am more likely to put the money to bank for later consumption. I will not buy the bicycle this year, which reduces the demand for bicycles this year and thus their price goes down or at least does not rise.

But, inflation is also caused by lack of supply. How do we get more supply? By people starting businesses. But in order for them to do that they must get a cheap loan. But Feds have raised the rates so they can not get a cheap loan and thus do not start a new business and thus supply does not go up.

So Fed increasing rates would seem to help with demand-side inflation, while increasing supply-side problems. But demand-side inflation will fix itself, when things cost more people will spend less. So why is fed raising interest rates?

It's starting to look to me like inflation is a political problem. When things cost more people get angry and are less likely to vote for those currently in power.