(WXYZ) — In tonight's 7 UpFront report, we're focusing on inflation, which has us all feeling the pain in our pocketbooks.
During last night's State of the Union President Joe Biden identified it as a key issue to address by his administration.
We're being joined by the Chair of the Department of Economics at Wayne State University Dr. Kevin Cotter to talk about it.
You can see the full interview in the video player above.
"Part of the problem the last two years has been people have had a lot of money because they weren't spending money on travel, and then we're getting government money through various rescue plans, and now there's a lot of demand or things, especially things like cars, which all of a sudden producers can't make because of supply chain issues," Cotter says. "So, what the Fed wants to do by raising interest rates a small amount, all this would do is bring interest rates back to where they were before the pandemic, but that would reduce demand so that people cut back on spending somewhat and that should ease price pressures. So that's the best tool the government has to curb inflation."