Interest rates

Citing high inflation and the tight labor market, Fed Chair Jerome Powell announces the first rate hike since 2018.

With more likely to follow, the rate hikes will eventually mean higher loan rates for many consumers and businesses.

But analysts say the dip is likely to be temporary.

It all depends on how much inflation the central bank sees in the economy.

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Consumer loans and credit cards are sensitive to interest rate hikes. Long-term government bonds could also rise, affecting mortgages. But banks may not raise rates by much, to stay competitive.

Despite Federal Reserve action, inflation may persist for homes, but gasoline and food prices may respond more quickly.

The U.S. economy will need to keep improving in order for rates to go up.