The goal of the Fed's interest rate hikes is to get inflation under control while keeping the job market recovery intact.

Consumer prices spiked by 9.1% in June from the year before, the fastest pace since December 1981, according to the latest data from the Labor Department. Inflation is nowhere near the Fed's goal of 2% and has gotten worse in recent months.

Economists warn inflation could get even worse because gas prices have continued to hit record highs in recent days, exacerbating a spike that began after Russia invaded Ukraine.

Everything from food and energy to metals have become more expensive.

The high cost of living is causing financial headaches for millions of Americans and contributing significantly to record-low consumer sentiment, not to mention President Joe Biden's low approval ratings.

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Yet it will take time for the Fed's interest rate hikes to start chipping away at inflation. And even then, inflation will still be subject to developments in the war in Ukraine, the supply chain mess and, of course, Covid.

The goal of the Fed's interest rate hikes is to get inflation under control while keeping the job market recovery intact.

Consumer prices spiked by 9.1% in June from the year before, the fastest pace since December 1981, according to the latest data from the Labor Department. Inflation is nowhere near the Fed's goal of 2% and has gotten worse in recent months.

Economists warn inflation could get even worse because gas prices have continued to hit record highs in recent days, exacerbating a spike that began after Russia invaded Ukraine.

Everything from food and energy to metals have become more expensive.

The high cost of living is causing financial headaches for millions of Americans and contributing significantly to record-low consumer sentiment, not to mention President Joe Biden's low approval ratings.

*

Yet it will take time for the Fed's interest rate hikes to start chipping away at inflation. And even then, inflation will still be subject to developments in the war in Ukraine, the supply chain mess and, of course, Covid.