Fed Hikes Rates: From Credit Cards to Car Loans, How Your Wallet Takes the Hit

The US Federal Reserve’s decision on Wednesday to raise its benchmark interest rate by a quarter of a percentage point is expected to affect borrowing and saving costs across the economy. The increase in the short-term federal funds rate is likely to be felt most quickly by people with variable-rate debt, including credit cards and home equity lines of credit. Other borrowing costs, including mortgages and corporate loans, are influenced more by longer-term market rates.