THE FRESH BYTES
When the Fed raises interest rates, credit card debt becomes more expensive. Interest rates on consumer debt like a credit card balance tend to move in lockstep.
Mortgage rate are directly affected by bond market that often reacts to the Fed hikes. When Fed rate increases, rates on home loans increases.
Fed rate hikes are good to those who loves to save. When Fed raises interest rates, the interest on saving accounts increases.
In case of larger purchase, the consumers are demotivated. As increased Federal rates increases interest rates of loans. The purchasing power decreases.
When Fed rate hikes, the value of digital currency decreases. As the increased rates attracts to the investors to invest in safe assets like treasuries.
An increased Federal rates increases the rates of student loans. The student community can face difficulties on paying higher interests on loans.
When Fed begins increasing rates, interest on vehicle loans increases. Consumers are demotivated to buy new cars. The affordability of people decreases.
There is an indirect relationship between stock market and changed Fed rates. When Fed rate hikes, stock market as a whole go down.