It's also kind of a sham, "reducing demand" basically means reducing the amount of cash people have to spend, since it currently exceeds the amount of goods we

It's also kind of a sham, "reducing demand" basically means reducing the amount of cash people have to spend, since it currently exceeds the amount of goods we can supply. The nominal prices of things might go down but the average American won't be able to afford any more, since the whole point was to reduce demand. Even worse, higher rates tend to strengthen currency value, which makes imports cheaper but hurts domestic exports. It's already very hard to devalue the USD due to its status as a reserve currency and this exacerbates that problem. We run the risk of triggering a manufacturing recession, which will helpfully "reduce demand" with layoffs but not make anyone better off.