Federal Reserve Raises Interest Rates and Signals Potential End to Hikes.

The Federal Reserve has raised the federal funds rate by a quarter-point, which will lead to an increase in the prime rate and higher financing costs for consumer borrowing. Credit card users will spend an additional $1.7 billion on interest, and homebuyers have lost purchasing power due to inflation and the Fed's policy moves. Adjustable-rate mortgages and home equity lines of credit are pegged to the prime rate and will adjust accordingly. Auto loan payments are getting bigger due to rising interest rates and car prices. Savings account rates at some retail banks are up to 0.39%, while top-yielding online savings account rates are as high as 4.5%.