How raising interest rates helps fight inflation and high prices


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The Federal Reserve announced Wednesday an increase in its key interest rate by 0.75% to help fight inflation and get price growth under control. It's the third time in a row the Fed has raised rates by 0.75%, and the fifth interest rate hike of the year. The Fed hopes that by raising the interest rate, it can slow down the economy and cause prices to come back down. But how does raising interest rates do that, exactly? When you get a loan from a bank — for example, when you're buying a house — an interest rate is attached...