Why the Fed was slow to hike interest rates: The Taper Tantrum and a road trip : The Indicator from Planet Money The Fed hiked interest rates by 0.75 percentage points. But why the sudden jump now? Why not earlier? To understand the psyche of the Fed and its chair, Jerome Powell, we're turning back the clock to the 2013 Taper Tantrum, and a 2019 road trip.

Jerome Powell's ghosts

Jerome Powell's ghosts

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U.S. Federal Reserve Board Chairman Jerome Powell is displayed on a monitor on the floor of the New York Stock Exchange. Drew Angerer/Getty Images hide caption

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Drew Angerer/Getty Images

U.S. Federal Reserve Board Chairman Jerome Powell is displayed on a monitor on the floor of the New York Stock Exchange.

Drew Angerer/Getty Images

Amid blazing inflation, today the Federal Reserve hiked interest rates by 0.75 percentage points. But why the sudden jump now? Why not earlier? To understand the Fed's gradual approach over the last year, we're exploring two formative moments for today's Fed and its chair, Jerome Powell.

In today's episode, find out how lessons from the Fed's version of a rock tour and the so-called Taper Tantrum shaped America's central bank.

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