The Fed's Increase in Interest Rates and Inflation

During the pandemic, the Fed was very worried that there would be a recession actually was a brief recession so the Fed dropped interest rates the federal funds rate to zero. That caused mortgage rates to fall down to 3% and all kinds of interest rates to fall. They did this because I didn't want the pandemic to cause a really severe and long lasting recession. So we learned a lesson from 2008 when there was not enough stimulus and the lower session ended up being really long lasting like a lawsuit from like 2008 to 2012. The inflation is here and it's a bit more persistent than what the Fed would have hoped for which has meant that they have had to be aggressive with raising interest rates

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