The Federal Reserve's Effects on Inflation Rates from 2021 to Present

With 11 increases to the federal funds rate between March 2022 and July 2023, the Federal Reserve succeeded in tamping down inflation from a 40-year high of 9.1%. The rate finally dropped below 3% in the July 2024 reading—for the first time since March 2021.

Inflation is reported as the monthly reading of the Consumer Price Index for All Urban Consumers (CPI-U). The July CPI-U was released Aug. 14, 2024.
Chart: Investopedia / Sabrina Karl Source: Bureau of Labor Statistics
Investopedia