Federal Reserve Raises Interest Rates to Tame Soaring Inflation

The Federal Reserve raised interest rates for the first time in three years on Wednesday, aiming to slow down inflation and bring it back under control.

San Diego State University economics professor Joseph Santos said that by raising interest rates, the Fed is making it more expensive to borrow money, which will slow down demand growth and help control inflation.

The current 3.4% inflation rate is higher than the Fed's target of around 2%, and experts say consumers will feel the effects of the rate hike in their monthly payments for credit card debt, lines of credit, and SBA loans.

Santos said that lower inflation doesn't necessarily mean prices will fall, but rather that they will be rising more slowly. He added that it's possible to see another increase from the Federal Reserve board in the future, although he couldn't predict by how much.