[credit_guy]

I'll step in with a disagreement: CPI is a fact. The attribution to CPI to demand and supply is just a theory. And it's not all that relevant anyway.

The Fed has a job to do by law. Who cares who or what caused the inflation? Powell explains after each FOMC meeting that inflation is bad for the economy, and in order to have a healthy economy the inflation has to be reduced back to reasonable levels, around 2%. And the Fed will raise rates and keep them there until inflation is tamed.

He admits that there's supply side, but he repeatedly said the Fed can only control the demand side, and that's what they are doing.

[arc-in-space]

I don't particularly disagree with any of this from the perspective of the Fed, but that is a different discussion entirely - the distinction *is* crucial for the purpose of answering the original question of 'how is inflation bad'.