How The Federal Reserve's Rate Hikes Affect Your Finances

Answers to some of the most common questions about the impact of the rate hike.

Higher mortgage rates have sent home sales tumbling. Credit card rates have grown more burdensome, and so have auto loans. Savers are finally receiving yields that are actually visible, while crypto assets are reeling.

The Federal Reserve's move last week to further tighten credit raised its benchmark interest rate by a sizable 0.75 percentage point for a second straight time. The Fed's latest hike, its fourth since March, will further magnify borrowing costs for homes, cars and credit cards, though many borrowers may not feel the impact immediately.

The central bank is aggressively raising borrowing costs to try to slow spending, cool the economy and defeat the worst outbreak of inflation in two generations.