Fed hopes biggest rate hike in 22 years tames inflation without recession or stagflation

PROMO Finance - Inflation Money Personal Shopping Piggy Bank Balance - iStock - Yingko

The Fed's main monetary policy tool is the federal funds rate, which acts as a benchmark for every other interest rate in the U.S. economy - from borrowing rates for mortgages to business loans. It also helps determine many other rates around the world.