But economists agree this process is not an exact science, which makes it hard to know for sure how things will go. That translates to higher rates for businesses and consumers that want to borrow, which, the idea goes, will cool down the economy and hopefully tame inflation. KEITH ROMER, BYLINE: Over the last year in change, the Federal Reserve has raised the federal funds rate from a quarter of a percent to 5.5%. With new inflation numbers coming out tomorrow, Keith Romer from our Planet Money podcast walks us through three possible scenarios for what could happen next.
Yearly inflation did come down from a high of 9% last summer to a more manageable 3% last month. economy, a pandemic, supply chain disruptions, stimulus checks and, yes, inflation. The last few years have been a wild ride for the U.S.
