Hey kids, did you know the Federal Reserve (like a bank for banks!) is worried about prices going up too fast? It's called inflation, and it means things cost more! They're trying to lower inflation, but it's tricky.
- The Fed is watching how much people expect prices to rise.
- If people think prices will keep going up, they might actually go up even faster!
- The Fed might need to make borrowing money more expensive to slow things down.
| Thing | Info |
|---|---|
| Inflation Target | 2% |
| Current Inflation | Above 2% |
| Fed's Plan | Keep interest rates high to slow things down |
It's a bit like balancing a bike – it takes time and skill to keep it steady!
