The U.S. Federal Reserve's decision to raise interest rates by a quarter of a percentage point on Wednesday, its first hike in more than three years, is set to have varying effects on household finances, with borrowers facing higher costs while savers could benefit from better returns, Reuters reported.
The Fed primarily influences short-term interest rates rather than longer-term borrowing costs. As a result, the impact of the latest move will differ depending on whether consumers carry debt, have savings or are exposed to variable interest rates.
