The Federal Reserve doesn't set your mortgage or credit-card rate directly. It moves one lever — the federal funds rate — and the effects spread out from there. Here is the mechanics of when and why that lever moves, no political spin attached.

Inflation means prices are rising, so the same amount of cash buys less than it used to. Economists usually measure it as a percentage change per year. Here is a simple infographic to help explain the economic indicator and how it impacts you.