Increasing low wages or public transfer payment policy: One or the other

The economic policies being conducted at present in the United States offer a clear illustration of this question: what options are available to a government that wants to increase low incomes? It can increase the lowest wages (the minimum wage), but there will then be inflation and interest rates will rise, so it cannot also use an expansionary fiscal policy (public transfer payments to households, public investment spending, etc.); It can make public transfer payments to households, but then interest rates and therefore inflation must remain low, so it must refrain from increasing low wages. Joe Biden has in all likelihood opted for the second option.