Steve’s Barking; How does the Fed raising interest rates contribute to inflation .🤷‍♂️

 The conventional wisdom is to fight. Inflation is to raise interest rates by the Fed. Now it is my firm belief that raising interest rates does just the opposite. How might one might ask, is that possible after all doesn’t history tell us that the way to fight inflation is to raise interest rates?. Isn’t it true that there is too much money in circulation? * No history doesn’t take into account other things that were going on. In the United States during the Reagan administration, new ways of taking oil from the ground what is the real reason that inflation cool down not the raising of interest rates by the Volker Fed. Reason Germany inflation during the 20s stopped was because of the stopping of reparations. ** the problem with the idea of too much money in circulation is that the wrong people are getting this money not that there is too much money in circulation. 

Now one might ask how can the Fed raising interest rate lead to higher inflation? Easy the cost of raising money goes up ( money inflation). Too many of America’s businesses get by with short term borrowing , to meet there expenses they have raise their  prices or cut their work force.  This will cut the productivity of the business, cutting the productivity of will reduce the product, even if the product is services. The reduction of product means less goods and services from that business multiple that by how many businesses offer the same product. The product if need would raise the cost of said product. Multiply that by many products and you get a viscous cycle of inflation.