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This is how it feels when the days of cheap energy and easy money give way to $70 barrels of oil and ascending interest rates. The economy may be strong, but many people are feeling pinched. Economists say that feeling overshadows the fact that inflation overall is relatively low running at a 3.4 percent annual clip, the same rate as all of last year. The Federal Reserve has been raising interest rates for nearly two years to control inflation, and it is likely to again boost rates this week (Moody).
The rate increases were intended to slow a frenzy of consumption that built over the first half of this decade, when government policymakers used tax cuts and low interest rates to prod consumers to keep spending through a recession and the sluggish economic recovery that followed...
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