Great story! I would argue that there are 4 points missing here.

1. Risk takers. If rates get too high, then risk takers are less likely to start a new business, which in turn can be a massive amount of jobs and economic activity.

2. The end of globalization. I would argue that much of the inflation this cycle is also due to a broken world supply chain. This has been made much worse with the war in Ukraine.

3. Covid-19 Pandemic. We are in the midst of a pandemic that has dramatically affected demand. After years of shutdowns, people want to get out and enjoy life, all at the same time. Furthermore, China keeps having rolling shutdowns for Covid, which further affects the global supply chain.

4. Deflation. In attempting to have zero inflation, we may slip into deflation, which is much worse. One only needs to look at Japan and how deflation affected their economy.