The Daily Money: Federal Reserve sets stage for earlier interest rate hikes

Good morning, Daily Money readers. Jayme Deerwester back with you this Thursday. 

In an effort to rein in price increases that hit a 39-year high last month, the Federal Reserve on Wednesday agreed to clear the way for earlier and faster interest rate increases in 2022 by accelerating the phaseout of its bond-buying stimulus. It's now forecasting three rate increases next year.

"We are prepared to use our tools to make sure high inflation doesn't get entrenched," Fed Chair Jerome Powell said in a video news conference. "This is a strong economy, one in which it's appropriate for interest rate hikes." 

💡 INSIGHT OF THE DAY:  Let's face it, getting kids the latest gaming console, smartphone, or laptop for Christmas is arguably the most popular choice. But for those who may consider the option of giving stock to kids this holiday season, two experts believe that it's potentially the best value in the long run. 

"Gifting stocks could be a great way to teach children about saving and investing as well as learning about how the stock market works," says Eva Victor, director of wealth planning at Girard, a wealth management firm in greater Philadelphia. 

Other stories you won't want to miss:

Is inflation the Grinch that stole Christmas? From travel to gifts, what's more expensive this year?

Student loan payments are set to restart Feb. 1. People already have questions.

Canceling Airbnb or Vrbo last minute due to COVID? Here's how to get a refund.

Retirement planning. Why (good) debt is your friend when inflation goes up.

Ex-McDonald's CEO settles. Steve Easterbrook returns $105M after misconduct.

MOOD MUSIC:  Today's selection, "You're a Mean One, Mr. Grinch," is dedicated to inflation: "The three words that best describe you are as follows – and I quote – Stink, stank, stunk!" (BTW, if you're looking for holiday playlist fodder, check out the Whirling Dervishes' cover of that song.)