Fed policy for the last year has been to disappear money, which should eventually fix our inflation problem.
Cash is dwindling for the first time in a generation. The economy will act differently than most of us have seen in our lifetimes.
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M2, a measurement of how much money is in our economy, has been shrinking for months.
Then again, M2 expanded too much during the COVID-19 era policies (we overreacted to the problem. But I don't blame policy makers for taking bold action). So this is a somewhat natural backlash that the Fed needs to manage.
We are, and have been, undoing QE and raising interest rates simultaneously. This causes lending to be more expensive and savings to be better.
Alas, we all have debts to pay (lots and lots of individual debt, record high mortgage rates and car loan rates). We all have a bit less money as a people compared to last year.
So in practice, we are seeing personal savings dwindle and credit card debt (and other debt) balloon due to these interest rates.
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EDIT: Downvotes? Lemme explain further.
Since the peak in M2 of April 2022 at $22 Trillion, we're down to $20.9 Trillion, or roughly a loss of $1.1 Trillion in M2 (a measurement of how much money is in existence). The easiest place for cash to disappear is from liquid-savings accounts. Its very indirect: Fed raises interest rates, indirectly raising mortgages and car loan costs, raising what people are paying each money, eventually lowering savings accounts. But the "buck stops" somewhere, and its probably going to be in a liquid savings account.