With prices on the rise in the U.S. economy, the Federal Reserve is expected to announce on Wednesday an increase in interest rates, essentially pouring a cold glass of water on the economy.

Why would the central bank do that? The answer lies in the inflation crisis of the 1970s, when a failure to react quickly enough still looms large in the memory.

Guest: Jeanna Smialek, a reporter covering the Federal Reserve and the economy for The New York Times.

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Background reading: 

• The Federal Reserve is facing the fastest inflation most Americans have ever seen. The response may require some aggressive — and painful — measures.
• What is inflation, why is it up, and whom does it hurt? Here’s what to know.

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