Between the '30s and the '80s, the way to effectively fight inflation was to increase productivity. Since the use of fiscal policy/investment has been blocked until further notice this is no longer an option.

It should not be ignored that the higher interest rate set by the Fed is essentially an increase in the money supply at the maturity of the bonds that will be issued for any deficit spending. This makes it a bit difficult to lay fault for inflation on government spending if the fix for that is more government spending, only directed to those who already have plenty.

If shareholder equity is to be the new constant, with the Fed backstopping all risk even in the reality of greatly reduced productivity, the only variables are wages and prices. The Fed has fired the first shot across the bow of labor with this move, stating that profits will not be threatened, no matter how high they may be set. This is only the beginning of a class war that won't end well.