NASHVILLE, Tenn. (WTVF) — On Wednesday, many people were greeted to a cool and icy morning.
Coincidentally, on the same day, Fed Chair Jerome Powell said something else was cooling off too.
"The inflation data received over the past three months show a welcome reduction in the monthly pace of increases," he said.
But he warned that victory over inflation isn't here quite yet.
"While recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path," Powell said.
This time around, the Fed raised interest rates by a quarter point — the lowest increase since last March.
The news was a welcomed surprise for Wall Street, which climbed to its highest level since last summer.
But some people said they're not feeling the cool down just jet.
"I actually moved here from Chicago about a year and a half ago. And just in that little bit of time I can tell it feels a lot more like Chicago here now; just, the cost of rent, gas has even fluctuated a lot in a small amount of time," shopper Danielle Stortz, said.
Economists said it's going to take time before people feel relief in their pockets.
"I think we need to be prepared as consumers to see prices still going up, not perhaps as quickly, but prices will stay high for sure and will still increase over time," Christiano Manfrè, professor at Graziadio Business School, said.
The Fed is aiming for a 2% interest rate and experts said the road to get there will be long.
"Even when inflation is going to slow down, prices will still go up. So, they will go up less fast, but they will still go up," Manfrè said.
And while inflation eases, interest rate hikes generally mean borrowing money will be more expensive. Right now, credit card interest rates are at historic highs with the average interest rate at 20%.
The Fed says more interest rate hikes may be needed in the future. The next decision will be made in March.
