Inflation in 2022 was due to fbottlenecks in production due to the pandemic. The interest rate hikes did not stop inflation according to Alan Blinder, former vice chairman of the Federal Reserve. Since July 2022, the rate of price increases in the United States has decreased. Unemployment is the lowest in 50 years.
The rising prices are otherwise due to too little competition between the few dominant market players and too free pricing. In the event of cost increases or companies' desire for profit, they would rather raise prices than improve their productivity. Regulations need to be added to stop the price increases.
Continuing with the interest rate hikes risks creating unemployment for millions and the suffering that comes with it completely unnecessarily.
Learn more about the effect of interest rates on the economy.