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By Kristin Myers, Editor-in-Chief

What's Happening Today

I know most of us have been feeling the impact of higher prices on our pocketbooks. If you had to guess, how much do you think inflation has risen since last year? Well, on Wednesday, we'll all find out when the Consumer Price Index (CPI), one of the most watched inflation gauges, is released. It will indicate if the series of aggressive rate hikes from the Federal Reserve has had any impact on rising prices.

The data comes amid much confusion over whether we are in a recession or not, and will determine the path the central bank takes at future policy meetings. For now, the CPI is forecasted to come down in the month of July from the blistering pace in June, with economists expecting prices rose 0.3% compared to a monthly gain of 1.3% in June.

So far, policymakers at the Fed have maintained a hawkish stance about rate hikes, signaling they would do what it takes to bring down the annual rate of inflation. Stocks are rising today, as investors shake off concerns about the Fed's future moves after Friday's jobs report smashed expectations and alleviated worries about future rate hikes causing a recession.

Over on the hill, legislators in the Senate passed the "Inflation Reduction Act," (you might remember it by its former name: Build Back Better). The new law will raise corporate taxes, tackle climate change, reduce the price of some prescription drugs, and decrease the U.S. deficit. But despite its name, some studies—including an analysis by researchers at The Wharton School—suggest it would have little, if any, impact on inflation. After clearing the Senate, the bill now makes its way to the House.

- Kristin

Editors' Picks

In an Unequal Economy, the Poor Face Inflation Now and Job Loss Later (The New York Times)

I Have Savings and Retirement Accounts. Now What? (The Balance)

Average Credit Card Interest Rate Is 21.33% (The Balance)

Winners and Losers in Democrats' Signature Tax and Energy Bill (Bloomberg)

Hiring Gets Easier for Some Employers Despite Hot Job Market (The Wall Street Journal)

Is the Economy in a Recession? 'What You Call it is Less Relevant,' Says One Economist: Here's 'What Really Matters' (CNBC)

Types of Trusts (The Balance)

Term of the Day

Inflation Hawk

Hawkish monetary policy is policy that seeks to reduce inflation or prevent inflation by raising interest rates. It is also commonly called "contractionary monetary policy" or "tight monetary policy."

While hawkish monetary policy is helpful to stabilize prices, if interest rates are high for too long, it could decrease employment and lead to a decline in economic growth. However, hawkish economists are more concerned with the economic effects of inflation than maximum employment.

The opposite of a hawk is a "dove." Doves are more concerned with maximizing unemployment and often have a higher tolerance for inflation.

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Off the Charts

The average APR on credit card purchases has risen to 21.33%, continuing its trend of sharp monthly rate hikes as the Fed acts to curb inflation. Credit card interest rates are based on the prime rate, which closely follows the rate set by the Federal Reserve.