6 Things to Know About the Fed and Inflation: A Crash Course in Monetary Policy

Federal Reserve Chairman Jerome Powell testifies during the House Financial Services Committee hearing entitled Monetary Policy and the State of the Economy in the Rayburn Building on Wednesday, March 2, 2022.

Tom Williams | CQ Appeal, Inc. | Getty Images

Unless you’ve been to another planet, you know that on Wednesday the Federal Reserve raised its benchmark interest rate by 75 basis points and promised to further reduce its bond holdings. While investors initially cheered the announcement, sentiment quickly soured as fears mounted that Jay Powell and his team might still not be doing enough to dampen inflation.

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