Feeling the pinch from rising prices lately? You’re not alone! Many of us have noticed our money doesn’t seem to stretch as far these days at the grocery store or coffee shop.
What gives? In a nutshell, it’s inflation. Now, a little inflation is actually a normal, healthy sign that the economy is chugging along. But too much too fast can spell trouble.
So how does the Federal Reserve pump the brakes on runaway inflation? It’s all about tweaking the interest rates.
You may have heard that today’s sky-high interest rates are a response to inflation… but you may also be wondering WHY raising interest rates is supposed to lower inflation.
After all, today’s rates feel like adding insult to injury when it comes to prospective home buyers!
Is the tactic working? Will interest rates continue to rise? Valid questions that many of us have as we continue to weather the economic storm!
Click here for the full scoop on this economic balancing act.
