The business reporter is in New York.
Image source, ReutersThe US central bank has raised its benchmark rate for the first time in nearly 30 years.
The rate the Federal Reserve charges banks to borrow was raised.
In the US and abroad, the consequences will be felt.
The rate rise in the US will have an effect on you.
People in the US will face higher borrowing costs for mortgage, credit cards, student loans and other debt.
The 30-year fixed home loan has seen its average rate increase since 2008. Since the beginning of the year, the monthly payments for a median-priced home in the US have gone up.
Delores Robinson is a retired teacher from Ohio who bought a new apartment this month.
Ms Robinson said she was relieved to lock in a relatively low rate, even though it was higher than she had expected. The rising rates will make it hard for some buyers to purchase.
Home sales in the US are expected to fall this year.
It will be painful for people not to purchase, but it is also expected to cool price growth to 5% in 2022, after a decade of double digit gains.
It will help bring down inflation if that happens.
Reshuffling of investments happens when rates rise. The moves have been more pronounced because of the economic concerns.
People with 401(k) retirement accounts have seen the value of their investments plummet.
The S&P 500 has lost more than 20% of its value since the beginning of the year, making it the first bear market in the index's history.
The stock exchanges outside the US have also been hit by the price drop of risky assets.
Investment firms are demanding profitability from companies that have been losing money for a long time.
People are likely to face higher prices for things like taxi rides and deliveries, as was the case for a number of New York start-ups that promised 15-minute groceries.
"In times of uncertainty, investors look for safety and that's why we're taking steps to boost our bottom line, including slowing hiring," the CEO wrote in a letter to staff. The market is shifting and we need to react accordingly.
The post-pandemic labour market has seen companies competing fiercely for workers, allowing new hires to command higher pay and other perks and encourage many to switch jobs for better.
The downturn and higher rates have led to plans to reduce staff by hundreds.
Several large companies, including Amazon, Walmart and Walmart, have announced plans to slow or stop hiring.
According to the head of the US central bank, Jerome Powell, the US labour market is very tight and he hopes the economy will avoid mass job losses.
The economy was already facing challenges due to inflation.
The first three months of the year saw a decline in growth. The quirk in international trade data was the reason for that, but other indicators, like retail sales, have begun to decline.
As the economy weakens, the bank is at risk of bringing on a recession.
The US dollar has risen 10% this year as the Fed's moves prompting investors to shift money to America in pursuit of higher returns boosted demand for its currency.
It's a silver lining for Americans who are planning to go to the UK, where the value of a pound has fallen to its lowest point since the Pandemic.
The rise of the US currency means more expensive imports of commodities like energy and food. It adds to economic strains if a government has a lot of debt in dollars.
"Emerging markets tend to be the markets that are going to suffer the most," says the market analyst.
The US isn't hiking in a vacuum, that's for sure.
The Bank of England, as well as dozens of other countries, have recently raised their rates. Both Australia and Canada are located.
Many are battling with inflation of their own. They are following what's happening in the world's biggest economy.
In countries like Kuwait and Saudi Arabia, where currencies are tied to the dollar, the impact of US rate rises is almost immediate, as banks try to contain an outflow of funds to the US.
The economic story in the US will continue to be watched as those moves are felt on the ground.
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