Fed rate hike will likely push borrowing costs on credit cards, mortgages

The useful part

WASHINGTON — The Federal Reserve just raised the cost of money — bad news for borrowers, good news for savers. Wednesday by a quarter-point, the first rate hike since the summer of 2023. The hike will likely make it even costlier to borrow for homes, autos and other purchases.

How it works

• If you've been socking money away, you'll probably earn a bit more interest on your savings.
• The increase boosts the Fed's target rate to a range of 3.75 percent to 4.00 percent.
• Inflation has remained above the Fed's 2 percent target for more than five years.

Details worth keeping

The Fed's goal is to slow consumer and business spending by raising the cost of borrowing, thereby reducing demand for homes, cars and other goods and services, eventually cooling the economy and reducing upward pressure on prices.