How the Federal Reserve Fights Inflation | PBS NewsHour

Interest rates are headed higher again, as the Federal Reserve resumes its fight with inflation. That effort is almost a year and a half old now. At the same time, Fed Chair Jay Powell wants to tame inflation without tipping the economy into a recession. Economics correspondent Paul Solman breaks down the thinking behind the Fed’s moves.

Watch the video above to learn more, and then answer the discussion questions in the upper-right corner of this page.

This lesson was originally posted here on PBS NewsHour Classroom on July 31, 2023. Check out more resources at NewsHour Classroom.