The Federal Reserve on Wednesday lifted its fed funds rate for the second time in just three months, and markets responded nearly immediately.
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The Fed's latest rate hike will hit your wallet soon
The Federal Reserve's latest interest-rate hike already has banks increasing their prime lending rate.
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Less immediate is the impact the move could have on your wallet.
Most simply, the fed funds rate determines the interest rate at which banks borrow money short term.
Increases are passed on to other borrowers, mostly consumers, through higher rates on things like credit-card debt.
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This debt is based on the banks' prime loan rate, the interest rate used as a starting point for nonmortgage loans.
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