What’s the Relationship Between Inflation and Interest Levels? Inflation and interest rates tend to be connected and often referenced in macroeconomics. Inflation relates to the price from which charges for products or services increase. In the us, the attention price, or the quantity charged by way of a lender up to a debtor, is dependant on the federal funds price that is decided by the Federal Reserve (often called „the Fed“). The Fed has at its disposal a powerful tool…