The Federal Reserve raised its short-term benchmark rate by half a percentage point (the sharpest increase since 2000) to combat the highest inflation in four decades. Here’s what it’ll do:

Mortgage rates will increase and slow the highly competitive housing market sparked by low rates and low housing inventory.

Savings accounts will benefit with higher interest rates returned to those with their money tucked away in savings. It may take some time for banks to increase their rates.

Credit-card APRs could go up & buying a new car could get more expensive with increasing interest rates for loans.