How The Federal Reserve Raise In Key Interest Rate Can Affect You
PHILADELPHIA (CBS) -- The Federal Reserve recently raised its key interest rate by a quarter of a percentage point and more hikes may come this year.
One rate hike won't change the world, but if you have a credit card, savings account, invest in stocks or bonds or want to buy a house or a car, you should probably pay attention.
Unfortunately, your credit cards will get more expensive. Credit card companies typically mirror the Fed. So, chances are the interest rate you pay could rise soon.
If you can, pay off your balances fast, or transfer your balance to a zero-interest card to give you a little more time.
Car loan companies tend to do the same thing as credit card companies. Shopping for a car, expect to see similar increases in interest rates.
Likewise, if you're shopping for a new mortgage -- even though the Fed doesn't directly set mortgage rates.
And if you're thinking this recent rate hike will give your savings a boost -- not so fast.
In order for that to happen the Fed needs to raise rates higher, which they might do a couple of times later this year.