Dan Bangeino. Welcome to the Bangeino brief. I'm Dan Bangeino. Folks, I had said to you that the

federal reserve, which has this federal funds rate that they were going to hike to combat inflation,

that the federal funds rate and interest rates matter because in a middle class, largely middle class

society, like we have here in America, people live, I don't want to say live paycheck to paycheck

in a bad way. A lot of people don't have, you know, two, three years of income sitting in their

bank account, they just don't. It's not a common practice. So we live our lives either paycheck to

paycheck or month to month. So when we buy things at our big ticket items in the United States,

cars and homes, we tend to buy them on monthly payment plans, either mortgages or auto loans.

The problem with that is the monthly payments on monthly payment plans go up dramatically when

interest rates go up. That's why this story from the Washington Examiner, but what happened at the

Fed is such a big deal. The Fed conducts a historic interest rate hike in a desperate bid to control

inflation, inflation, Zach Halleshuk. They raised it by 75 basis points, three quarters of a point,

0.75. Sorry, it's a liberal's listing. We got to be slow here, right? That's a huge hike.

Unfortunately, they need a lot more. They're not even close to where they need to be to crush

inflation. They have to be, they interest rate, federal funds rate right now,

which is hovering in the two range needs to be up in like the five or six range at a minimum.

And it's not. There's going to be more of this. They say, are only going up. They are not coming

down anytime soon. Why does this matter for you? Why should you care? Well, because when the interest

rate, the federal funds rate goes up, it affects everything from what they do, from what the Fed pays

on bank reserves to what they pay on reverse repos. All of this stuff affects interest rates throughout

the entire economy, because banks have accounts at the Fed long and short of it is when they hike

rates, everyone else hikes rates too. And what does that mean for you? It means a lot of what you're

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