When the Fed raises or lowers short-term interest rates, the impact doesn't ripple evenly through the economy. Different interest rate-related products will behave in different ways leading up to, and in response to, a Fed rate increase or decrease. Here's a look at how quickly your budget will take a hit, or benefit because of the Fed interest-rate moves.

What do Fed rate moves mean?

Mortgages Home Equity Auto loans CDs MMAs Credit Cards Credit cards • Variable-rate credit cards typically move in direct response to Fed interest rate action, as most are tied to the prime rate. That gives issuers some latitude as the issuer's policy may allow them to price your card on the highest prime rate in effect during the preceding 45 days. In a rising rate environment you'll feel the increase much more quickly. In a falling rate environment you'll wait 45 days. • Fixed-rate cards don't provide much of a safe haven in a rising rate environment because issuers can change terms with as little as 15 days notice. That works against you in a rising rate environment. It could, potentially, work to your benefit as rates fall, but don't hold your breath.   Conclusion: Variable-rate credit cards are sensitive to Fed moves, especially when rates are rising.   Compare low-interest credit cards.