The Fed raised interest rates this month again, from 3% to 3.5%. How might this impact you? You will likely see higher interest rates on borrowing, such as home mortgages and car loans. Rates are expected to continue to increase, though, so if you're considering taking out a loan do so sooner rather than later. HIgher interest rates will also likely put some additional downward pressue on certain types of investments. However, you will likely be able to eek out a bit more interest on your savings account. Higher interest rates are also expected to cool demand for labor somewhat, possibly alleviating some of the worker shortage. The main purpose of increased interest rates, however, is to lower inflation, so we are likely to see the historical inflation rates tame down in the coming months.