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By Kristin Myers, Editor-in-Chief

What's Happening Today

After Friday's Consumer Price Index (CPI) figures showed that inflation isn't slowing down, the Federal Reserve will be under pressure at its two-day policy meeting that starts tomorrow to do something about it. It's widely expected that the central bank will decide to hike interest rates another 50 basis points (half a percentage point) as costs continue to rise for just about everything.

On the one hand, these rate hikes could bring some relief to American consumers by slowing inflation, which in turn would make expenses like groceries, rent, and clothes cheaper. But on the other hand, higher rates make borrowing more expensive and will sting Americans looking to take out a loan to buy a house, a car, or anything else. If you have credit card debt, it's best to pay it down now before rates go higher and make debt loads even more expensive.

Inflation continues to hit hard at the gas pump, where the national average cost for a gallon of gas crossed $5 for the first time ever over the weekend, according to AAA. Drivers in California are being impacted the most, with gas costing over $6.40 a gallon on average for regular fuel, the most in the country.

In anticipation of coming interest rate hikes, stocks are plunging, with the S&P 500 falling into bear market territory, or more than 20% off its most recent high in January. Cryptocurrency prices also tumbled, with the price of Bitcoin dropping below $24,000. While investors don't love high inflation because it creates higher operating costs for companies, they aren't thrilled by rate hikes either, which take a bite out of corporate profits.

- Kristin

Editors' Picks

Inflation Will Crank Up Your Air-Conditioner Bill This Summer (The Wall Street Journal)

Inflation Dictionary: Your Guide to the Jargon (The Balance)

US Dollar Surges to Strongest Since April 2020 on Fed Hike Bets (Bloomberg)

Bitcoin Plunges Below $24,000 and the Crypto Meltdown Claims Another Casualty (CNN Business)

My Investments Are Losing Money. What Should I Do? (The Balance)

Inside Biden's Frustration with Soaring Prices (The Washington Post)

US Budget Deficit by Year Compared to GDP, the National Debt, and Events (The Balance)

Off the Charts

Amid a historic run-up in fuel costs, the price of gasoline crossed into $5 territory for the first time this weekend, according to AAA.

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Number of the Day

70 - That's at least how many years it's been since consumers felt this pessimistic about the economy and their own finances, one popular survey showed.