Notice how expensive gas, milk, and eggs are lately? Wonder why? 🧵 1/7
The answer is #Inflation, which is a general increase in prices over time. Inflation causes your money to lose value over time - prices go up, and $1 can buy less than it did before. High inflation causes your money to lose value faster. So the things you buy cost more $. 2/7
Inflation is typically about 3% per year, meaning things get about 3% more expensive each year. Over the past 12 months, inflation rose to 8.5%, which is insane! This is exactly why things are so much more expensive now. 3/7 
If paychecks are not going up at the same rate as #inflation, then everyday Americans will definitely notice the decreased value of their dollar when buying things like gas, milk, and eggs. These everyday expenses are now a larger percentage of your income. 4/7
To help fight rapidly rising #inflation, the Federal Reserve, America’s central bank, raises interest rates. An interest rate is the cost to borrow money. Your bank pays you interest on your savings because they are borrowing your money to lend. 5/7
By raising interest rates, #TheFed is trying to slow the economy down. Just like pressing on the brakes of your car when you are going too fast, raising interest rates should slow growth and ease inflation. At least we hope for the good of buying gas, milk, and eggs. 6/7
#TheFed is meeting today and will likely announce another rise of interest rates to fight inflation. I’ll be back with more tomorrow and will break it down. 7/7
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