This is a very valid question. Up until 2018 or so the liquidity was provided to banks which in turn controlled how much money to loan out. Hence keeping the inflation in check and reducing their risks. however, due to COVID our governments directly handed money to general public through various bills and benefits. That liquidity found its way into other assets. The low mortgage rates pushed housing markets to new highs increase by 100%-200% further increasing net worth of millions who in turn are spending more (wealth effect) further fueling inflation. Now how do you tame this spending? Only way to do so is to reduce the wealth effect or accept the inflation to be higher than 2% target and admit it will take several years to stop it from increasing.

The Taylor rule is showing that the interest rates should be over 10%.