If banks hold 100% of the money and lend it all out x10 (fractional reserve) and earn 1% interest, the money supply is growing by 10% per year.
You've got it backwards.
Banks hold other people's money and use it to issue loan. It's the issuance of loans that creates money. The fractional reserve doesn't magically multiply the money. It just (in a roundabout way) allows banks to loan up to that multiplier of money to people. But that only works if there's people who want to borrow that money.
If a bank earns 1% interest, that doesn't grow the money supply. It transfers money from the people that borrowed the money to the bank which then uses it to pay executives, shareholders and employees (in that order of priority).
The higher the interest rates, the less money people can afford the borrow, the more the money supply shrinks.
Banks HATE high federal reserve rates, because that means people don't borrow as much which means they don't make as much money.
When business and the wealthy class get richer, they want to get even RICHER. Prices rise. Which drives record profit, which makes rich people wealthier, which causes the cycle to repeat.
This can only happen in a poorly regulated environment where the rich setup monopolies or oligopolies. Otherwise they'd lose all their customers if they raise prices.
We just need proper incentive structures and regulation. But seeing as nobody has the guts to start figuring that out, the only lever we have is interest rates.
I think you're just speaking for yourself here. Before you start spreading misinformation on the internet, maybe you should find the guts to actually figure out what you're talking about.
High federal reserve rates can make things difficult for banks and that might be why the CEO of JP Morgan is butt hurt right now.
Want to deal with inflation? Raise interest rates.
Want to really improve the population's purchasing power? Break up the monopolies and oligopolies.