Here's what the Federal Reserve's 25 basis point interest rate hike means for your money

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Everything from mortgages and credit cards to student and car loans will be impacted by another rate hike from the Federal Reserve.

"The easing of inflation pressures is evident, but this doesn't mean the Federal Reserve's job is done," said Greg McBride, chief financial analyst at Bankrate.com. "There is still a long way to go to get to 2% inflation."The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight.

On the flip side, "with rates still rising and inflation now declining, it is the best of both worlds for savers," he added.credit cards Credit card annual percentage rates are now near 20%, on average, up from 16.3% a year ago, according to Bankrate. At the same time, more cardholderswhile paying sky-high interest charges — "that's a bad combination," McBride said.

The average interest rate for a 30-year fixed-rate mortgage is now around 6.4% — up almost 3 full percentage points from 3.55% a year ago.

 

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