Inflation rate rises; 8.5% annually

From the Wall Street Journal - As with all bad economic news it hurts lower income people the most. Interest rates will probably rise half a point in May.

High inflation is the downside of booming growth as the economy bounces back from the Covid-19 pandemic, creating a tough balancing act for the Fed as it tightens monetary policy to douse price gains without damping growth.

High and rising inflation readings have cranked up pressure on the Fed to keep lifting interest rates this year to lower price pressures. The central bank raised its benchmark rate in March for the first time since 2018.

With job growth strong and inflation well above the Fed’s target, many Fed officials have indicated they could support raising rates by a half percentage point—instead of the traditional quarter point—at their next meeting in early May.