More rate hikes are expected in the near future as Bidenflation continues to burn a hole through your pocketbook.
So what does all this mean for the average American?
"What we're going to see is eroding purchase power. We're going to see a lot of discretionary spending changes," says Randy Dewey of CEO Coaching International.
Like always, it hurt those who can least afford it.
"It hurts the poor and the middle-class disproportionately because the amount of available cash they have has now just shrunk. The ability to actually save for the future and spend at the rate they were is going to be completely curtailed," says Dewey.
That means a smaller new car or home, if you still have extra money to buy one.
Some economists argue the Fed was too slow to act, but Dewey says the economy is such a complex beast, any little change can disrupt the whole thing.
"Jumping up a percentage point a month until it cools off will have deeper implications and could trigger other things we don't want," he says. "I think the balanced approach we've seen from the Fed is a more staged approach, and I like that."