In an effort to control inflation, the Federal Reserve yesterday raised its benchmark interest rate by three-quarters of a percentage point for the second consecutive month, and signaled that further rate increases will likely be coming.

But Fed Chairman Jerome Powell hinted that future rate hikes may be smaller, causing the S&P to gain 2.6% on the day.

Consumers will feel the effect of the latest interest-rate rise in higher borrowing costs for mortgages, car loans and credit-card debt.

Although US unemployment is now near a 50-year low, there's still a risk that increased cost of borrowing could touch off a recession and loss of jobs.

But on a positive note, savings could begin once again to earn meaningful interest - perhaps even enough to offset the effect of inflation.