Americans don’t agree on much these days, but there seems to be one thing we strongly agree on: inflation is way too high. A recent Gallup poll found that inflation easily topped the list of the nation’s economic concerns.
It is also high on the Federal Reserve’s list of concerns, and Chairman Jerome Powell has pledged to “use our tools” to bring inflation down. “Use our tools” in this context is an understatement for raising interest rates. But what exactly is the Fed trying to accomplish with higher rates? And are his tools enough to do the job?