Rising prices make it hard to get by when you live on a fixed budget. Even if you manage to raise your wages, inflation that increases at a faster pace than your salary means that you end up with less purchasing power.

The negative aspects of inflation go even deeper than just squeezing the margin of income that allows you to live your life. Inflation distorts price signals and undermines our faith in democratic capitalism. It is reasonable to ask why the Federal Reserve is granted so much power—even when it fails to meet its mandate to ensure stable prices.