|I'd say that in a properly working economy, when high inflation is present, rates should be moving up to slow down things and ensure a smooth continuous landing and maintain healthy GDP growth.|
But current high inflation is not caused by an overheating economy but rather due to shortages, trade, manufacturing imbalances and of course so much Feds $$$ help thrown at markets (QE, Infras, Covid compensation, debt ($$$ deficit). We also have insane stock valuations due for a correction except commodities.
So reducing QE/increasing Feds rates will perhaps fight inflation but since we do not have an overheating economy, it will have a dramatic effect on the said fragile economy, making things worse maybe. Hope not. But options are limited for Governments and central banks. Doomed if you do, doomed if you don't.
I am no economist so pls take my opinion for a grain salt but this is how I see things.