I should also throw in here, the Fed is not raising your interest rate. Consumer Interest rates are based on the 10Y treasury.
My mortgage is literally 2.3% while my 2-year duration Bond funds are yielding 3% right now.
"My" interest rates have definitely changed and I'm changing my behavior because of it. I'm buying up more short-term debt to take advantage of 2% money market and 3% CDs that have sprung up.
They have in fact dropped 0.9% since then and the Fed has raised its rates 1.5% total.
You might want to think about why that is working backwards from the way you say.
Because the Eurozone is crap right now and people are fleeing. Sending money to US-debt, pushing 10Y interest rates down.
Please teach me on how inflation works then?
Prices go up. For example, a dozen eggs cost .065 mBTC in December 2021, but today they cost 0.125 mBTC.
While there's a variety of reasons for this happening, some of the more important ones are the price of fuel (ex: if it costs more to deliver eggs to your grocery store, their costs will go up). The cost of fuel has skyrocketed (and calmed down a bit...) ever since a large oil-producing nation went to war with another energy-providing nation starting in Feb, 2022.
Or, in the case of BTC, a collapse of historical magnitude happens as it turns out it was a rather bad "inflation hedge", and you probably shouldn't trust what the community promising "BTC is an inflation hedge" has to say about inflation.