The Fed's rate hike could negatively or positively impact you

The seventh rate increase this year by the Fed will make borrowing for homes, cars, and other purchases considerably more expensive for families and businesses. On the other side, you'll get a little bit more interest if you have money to save.

The Fed raised rates by a smaller amount on Wednesday than it had in its previous four consecutive three-quarter-point increases as part of its efforts to combat excessive inflation. The downturn is partially due to the economy's cooling and the reduction of inflation.

Many analysts express concern that a recession, which might result in job losses that would be difficult for households already suffering from inflation, is still on the horizon as interest rates rise.