The Fed just hiked interest rates - here's how that could impact your life

If you've ever borrowed money or opened a savings account, then the Federal Reserve matters to you.

As was widely expected, the US central bank just decided to raise its benchmark interest rate to a target of 0.75% to 1% at its March 14-15 meeting, and it has signaled that more rate hikes are to come.

That rate, called the Fed funds rate, serves as a benchmark for basically every interest rate in the US: Government borrowing rates, mortgage rates, credit-card rates, savings account yields, and so on.

The Fed uses it as a way to accelerate, or slow, economic growth. The rate is rising because the job market is relatively strong and the central bank doesn't want prices rising too fast. Making it costlier to borrow will eventually slow spending by companies and consumers alike.

So, even if you're not a titan of finance, the Fed's interest rate decision could still affect you if you're planning to buy a house or save for retirement. Here are some of the major ways the Fed can impact the lives of everyday Americans.