This is their strategy to deal with inflation, which they've stated explicitly (https://mronline.org/2022/05/26/u-s-federal-reserve-says-its-goal-is-to-get-wages-down/)
Right now we are at a period of high supply and low demand due to supply chain issues and Russia's war with Ukraine, so instead of increasing supply, they are actively and strategically trying to reduce wages… which will decrease all of our bargaining power, and in all probability cause a recession and mass unemployment.
Isn't the entire point of this horrible capitalist system that capitalists will step in and meet demand, and then competition will reduce prices?
I know that's now how it works, it's just frustrating to the point of rage to watch the only strong labor market of my lifetime be purposely tanked by the Fed rather than let capitalism figure out ways to hold up its end of the bargain for once. This is why people are so receptive to the message that the system is rigged – because it is.