Record low-interest mortgages are long gone. Credit card rates will likely rise. You'll pay more for an auto loan.
The unusually large three-quarter point hike in the Fed's benchmark short-term rate is going to have a lot of impact on Americans' finances.
The hope is that by making borrowing more expensive, the Fed will succeed in cooling demand for homes, cars and other goods and services and slow inflation.
Dr. Matthew Will, Associate Professor of Finance at UIndy, says despite the political back and forth, inflation is easy to describe.
"It's when there's more money in the economy and less stuff to buy," Dr. Will said. He says the interest rate hike is not directly responsible for the prices people will continue to see in the coming months.
"People are going to get a little confused on this because in the near term, you will see higher interest rates on your credit card , for your mortgages but it's not because of what the fed did. It's because of the inflation that's already here," Dr. Will said.
If you're considering buying a home, take note that home rates have soared in the past few months and could continue to rise. According to Bankrate, the 30 year mortgage payment on a $450,000 home has went from $1,500 in January to $2,158 this month. The average APR on credit cards is more than 20% for the first time and that's expected to stay there for a while.
Despite all of this, Dr. Will says the feds aggressively attacking inflation will ultimately bring prices down for every day goods in the long run.
