How the Fed Steers Interest Rates to Guide the Entire Economy

With inflation rising to its highest levels in 40 years, the Federal Reserve plans to take action by raising interest rates in an effort to get the money supply under control. This video looks at the ways the Fed guides the economy by influencing the federal funds rate, which then affects everything from banking policies to the housing market. 

Questions:

1. Why is the Fed planning to raise the federal funds rate?
2. How does the federal funds rate eventually affect consumer demand for services like home loans or credit cards?