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 Certificates of deposit, or CDs • Yields on certificates of deposit move with Treasury securities of similar maturity, as they compete for the consumer's dollars. • Longer-term CDs, such as the five-year, typically move well in advance of a Fed interest rate move. • Competition plays a large role in CD interest rates because deposits can be an attractive source of low cost funds for banks. That competition can keep yields propped up a bit early on in a declining rate environment, but the downward trend will gain momentum when the Fed cuts.   Conclusion: Yields generally move in advance of a Fed rate change, but competition among institutions also affects interest rate offers.   See CD rates in your area.