Because it’s necessary to avoid catastrophic outcomes. Politically, nobody wants to tank the economy on their watch. There’s absolutely no incentive for the go

Because it’s necessary to avoid catastrophic outcomes. Politically, nobody wants to tank the economy on their watch. There’s absolutely no incentive for the government to maliciously raise rates. The intention is to avoid a situation where everything moves so fast that things spiral out of control. From my understanding, the only thing worse that a deflation is hyperinflation. People become completely unable to afford anything.