Dumb question on Taylor Rule/Interest rates

CFA Level III
#1

Ok, so im kind of confused… maybe its because of the current US economy isn’t making sense but…

So to increase inflation, the fed will decrease short term rates. So if the expected inflation is above the target inflation, they will want to increase rates. If the expected GDP is below the trend GDP, they will want to decrease rates rates. to stimulate output by lowering corporaitons cost of capital.

Aren’t we current talking about when the Fed will increase rates, which will cause inflation?

#2

Fed raising rates slows GDP and cools inflation. It makes it more expensive for someone to borrow and buy stuff, this lowers the demand for stuff slows GDP growth and producers of this said stuff have to lower prices to entice purchasing behavior to unload their inventory.

When the two components of the Taylor rule disagree with eachother, policy makers may or may not raise/lower rates depending on social/political pressures.