The Federal Reserve raises interest rates to lower inflation : The Indicator from Planet Money Today, inflation hit a 40-year high of 7.5%. The Federal Reserve is expected to start raising interest rates next month, but how exactly does that affect inflation?

How to bring down inflation

How to bring down inflation

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(Photo by Spencer Platt/Getty Images) Spencer Platt/Getty Images hide caption

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Spencer Platt/Getty Images

(Photo by Spencer Platt/Getty Images)

Spencer Platt/Getty Images

A recent survey by YouGov and The Economist found that nearly 80% of Americans don't understand the relationship between interest rates and inflation. With inflation at a 40-year high and the Federal Reserve expected to start raising interest rates, we thought it was time to explain the government's strongest tool for fighting rising prices.

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