What Happens When the Fed Raises Interest Rates
The gist
When the Fed raises interest rates, it becomes more expensive to borrow money, which tends to slow down spending and investment in the economy.
Explain like I'm 5
It's like when your parents say you have to pay more allowance to borrow their bike, so you might ride it less and save up instead.
Big picture
The Fed raises rates to keep the economy from overheating and control inflation, helping to keep prices stable and the economy balanced over time.