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Is corporate greed driving inflation? : Planet Money Corporate profits are soaring. So are prices. Can corporations just not raise prices? Would that fight inflation? We examine this theory making the rounds. Then, we go inside the pipes of the economy to see how mortgage rates connect to that recent rate hike by the Federal Reserve. | Subscribe to our sister podcast, The Indicator from Planet Money. It's daily, and always less than 10 minutes.

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Two inflation Indicators: Corporate greed and mortgage rates

Two inflation Indicators: Corporate greed and mortgage rates

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LOS ANGELES, CALIFORNIA - NOVEMBER 11: A person shops in the meat section of a grocery store on November 11, 2021 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
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Mario Tama/Getty Images
LOS ANGELES, CALIFORNIA - NOVEMBER 11: A person shops in the meat section of a grocery store on November 11, 2021 in Los Angeles, California. (Photo by Mario Tama/Getty Images)
Mario Tama/Getty Images

We have been getting a version of this question lately: Is corporate greed driving inflation? Corporations are taking in record profits. Inflation is at 40 year highs. So could corporations just maybe not raise prices and still be fine and would that stop inflation?

There's a lot to unpack there, so today on the show, we investigate the greed thesis.

We also look through the metaphorical financial pipes connected to the Federal Reserve to see how last week's decision to raise interest rates will affect many of us, through higher mortgage rates.

Today's episode was adapted from Planet Money's short, daily podcast, The Indicator.

Music: "Live Twice" "Brixton Avenue" and "Must Be Love."

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