> That’s not true. You can reduce household demands by raising the rates which is what they are trying to do now. That changes demand, not supply, as you astut

> That’s not true. You can reduce household demands by raising the rates which is what they are trying to do now. That changes demand, not supply, as you astutely observe. Fed has no tools for supply, by design. That's why they've pushing back on the US govt recently, talking publicly about how current inflation is 30% due to demand (oversupply of money, low interest rates) and 50% due to supply constraints (food, energy, and Asian supply chain slowdowns). They're telling the US govt that solving inflation will require govt and private sector solutions to the supply problems. The Fed has no tools for those.