By raising rates, the Fed is trying to (in theory) make you slow down your spending (too much money and too few goods spark inflation). So when they raise it, the cost of money goes up for a car loan or mortgage or something else you want to spend money on. At some point, you’re going to pull back (can't afford it). The higher cost of money reduces your purchasing power — what you can afford to buy — and the Fed is effectively making you buy less. And that should bring down inflation (more goods, less money). It's a thin line they walk on, as if they don't get it "just right" (interest rates go high enough for long enough), economic growth will slow and some people will lose their jobs (recession).
And the wealth gap gets larger, because the top 1% didn't spend it anyway (other than on share buybacks, which produces nothing and nothing trickles down either). A windfall tax is an option, but the media moguls who control public opinion don't want it to happen (they are among those it will hurt), so their lobbyists who control public policy won't let it.
Shuhak 