This was expected since at least December. The market is pricing in 6 more rate increases throughout the year. They simply can't afford to lag behind inflation too much for too long.
But yes, raising too much too fast will cause stress and defaults, and nobody wants that unless it's absolutely necessary.
Fed tightening would force fiscal side to actually restrain spending which would help alleviate inflation. That's the whole point of tightening to begin with (tightening both public and private credit).
The reason the Fed is supposed to be independent is to avoid a Venezuela type situation where deficit spending is monetized through money creation. Well the Fed has been effectively doing that through QE for two years.