@garrettkauppila: Part 2 of 3: The Fed sets interest rates low in response to economic slow down. It is an effort to adjust monetary policy in order to incentivize spending and borrowing. This stimulates our economy and leads to excess capital in our market and wallets. Therefore, although it can help encourage spending, it is also directly tied to an increase in inflation. If you ask me, we need to try to be more stable with our Fed funds rate as opposed to letting the pendulum continuously go too far one way or the other then fixing it for years to follow. Example being, dropping interest rates to nothing allowing nearly-free borrowing after Covid which resulted in record-high inflation for years. Our M1 and M2 money supply increased at rates never seen before as we printed money.

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