U.S. Poverty Is An Issue
This article (Nearly 8 million Americans have fallen into poverty since the summer: https://www.washingtonpost.com/business/2020/12/16/poverty-rising/) strongly suggests that the Fed likely has no ability to raise rates without crushing the groups that have fallen into poverty and are on the verge of being evicted in the dead of winter. This is becoming a political issue, and the Fed is responding.
To be clear, we think what the Fed is doing is the right thing (really the only politically-viable thing it can do); it appears that the Fed may effectively be attempting to act as Solon in ancient Athens, as described in “The Lessons of History” by Ariel and Will Durant as above.
The Fed policy is going from “subjugating US middle and working classes to support the USD”, to “subjugating the USD to support US middle and working classes and ‘marginalized groups.”