The Fed's interest hike will affect you in ways you may not expect

An ASU economist says the perception that the Feds are doing something about inflation, can help make it true.

An ASU economist says the perception that the Feds are doing something about inflation, can help make it true.

In this story aired March 16, 2022, on KVUE:

A quarter-point hike in the interest rates isn't much, but it can help employers believe that employees won't want raises to keep up with inflation. If the employees don't want more money, companies don't have to raise prices, which starts a cycle of inflation.

– Lee McPheters, research professor of economics and the director of the JPMorgan Chase Economic Outlook Center