This paper navigates the relationship between inflation and the US economic growth and methods that the Fed and FOMC use to keep inflation from de-anchoring from its expected target. Historical data on the US economy (like GDP

CPI Index

etc.) suggests that when the inflation rate goes up or down beyond a certain point

the economy will be affected. Since it is crucial for any country

especially the US

to sustain high economic growth to maintain its global status

we need to examine how inflation affects the US economy. This paper uses empirical data from the Fed between 1920 and 2021

and the results show that a high inflation rate will considerably influence economic growth.