Consumer prices continue to rise at the fastest rate in decades.
And that has the federal reserve once again increasing interest rates in an attempt to slow inflation down.
CBS News business analyst Jill Schlesinger says the fed could continue to raise rates in the coming months to slow down price hikes, but faces a delicate balancing act.
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“The fed is trying not to go so fast to increase interest rates by so much so quickly that it would cause the economy to stop in its tracks,” Schlesinger said.
The White House has supported the fed’s effort to lower inflation. And while the strategy is designed to bring prices down it also makes borrowing money more expensive.
Homeowners who have an adjustable-rate mortgage could see their rate go up. Auto loans, student loans and interest on credit cards will also rise slightly.
Schlesinger says it will take time for the latest rate hike to have an effect on the economy and ease the pace of inflation.