The main problem is inflation. Goods and services are getting much more expensive. US gas prices hit another high on Tuesday — $4.37 per gallon. Globally, higher food and energy costs could last for years, according to the World Bank.
The recognized cure for inflation is to raise interest rates. This makes it more expensive for companies and people to borrow money and cuts down on how much they’re spending. The Federal Reserve did that last week and plans to do it again in the months to come.
Inflation affects everyone. The people who can least afford it are hurt the most.
Read this CNN report written by Alicia Wallace about how inflation is squeezing single parents, more than half of whom make less than $15 per hour, according to Oxfam. Wallace talks to parents skipping meals and racking up debt.Interest rate hikes will hurt too. The entire point of raising rates is to slow down the economy, CNN’s Chris Isidore pointed out back in…
