The Federal Reserve (Fed), which controls money in the US, is worried about prices going up too fast (inflation). They want prices to rise slowly, around 2% per year. Recently, prices increased more than expected.
- The Fed is closely watching how fast prices are rising.
- They might not lower interest rates soon because inflation is still high.
- A higher-than-expected inflation report made the Fed more cautious.
| Inflation | Details |
|---|---|
| CPI (Consumer Price Index) | Prices rose faster than expected. |
| Core CPI | Prices (excluding food and gas) also increased significantly. |
| PCE (Personal Consumption Expenditures) | The Fed will release a report next week. It may still show high inflation but maybe less than the CPI. |
The Fed's decisions affect your money! If interest rates stay high, borrowing money might be more expensive.
