How Fed interest rate hike will affect you

The Federal Reserve announced Wednesday, Sept. 21 its key interest rate will be raised by three-quarters of a point. The margin is small, but the impact is not. Economists expect all of us to feel the effects of this change, from the stock market to the grocery store.

"These Fed interest rate hike, that's the tide that lifts all ships in terms of borrowing costs, and everybody, I mean everybody, pays more," said Abdur Chowdhury, Marquette University professor. 

Chowdhury expects an immediate impact on the housing market, which he said will cool down with higher interest rates for mortgages. That's exactly what the Fed is trying to do, but the move meant to slow inflation will still raise some costs for you, like paying off any outstanding balance on credit cards.

"Average household in the U.S. has an outstanding credit card balance of about $9,000," said Chowdhury. "Today's rate increase means that every month, the interest payment is going to go up about $15."

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He also believes this will lead to higher unemployment, as businesses will be less likely to take out loans and thus, spend less.

Chowdhury said now's a good time to review your spending and cut back where you can.

Another expert said if you're already saving money this change could mean a higher return on investment.

"We've seen savings accounts at 3%, and they'll continue to move higher as interest rates rise in the months to come," said Greg McBridge, chief financial analyst.

If you have debt, experts say you should pay off your high-cost debt first or consider re-financing those loans.