Low employment combined with high inflation is forcing the fed to raise interest rates to induce lower demand with the side affect being higher unemployment. This is how they killed inflation in the 80's. They are trying to thread the needle of inflation and recession. The likely outcome is eventually a recession.

Conversely, the government could raise taxes across the board to control demand and trickle that money back to individuals over time, but it is political suicide.

Keep in mind when the fed talks about lower demand, that includes lower labor demand. They are likely to be forced to push demand to recession levels if they want it to match supply across the board. More lockdowns in China is certainly not helping on the supply side, and the latest jobs report showed the labor market not loosening.

We are certainly in something but what it is hasn't had a word assigned to it yet. Maybe it's stagflation, maybe it's swagflation, I dunno.

Every downturn is like all the others and every downturn is a unique snowflake.