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Why should you care when the Fed hikes its benchmark interest rate?

A quarter-percent actually means a lot, and it's just the beginning.

Traders in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) react to the Federal Reserve's statement that it would increase its benchmark interest rate December 14, 2016 in Chicago, Illinois. The much-anticipated decision will move the Feds benchmark rate to a range between 0.5 percent and 0.75 percent.
Traders in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE) react to the Federal Reserve's statement that it would increase its benchmark interest rate December 14, 2016 in Chicago, Illinois. The much-anticipated decision will move the Feds benchmark rate to a range between 0.5 percent and 0.75 percent.
Scott Olson/Getty Images

The Federal Reserve has raised interest rates by a quarter percentage point, in line with expectations. A rate hike of this size may sound small, but it can impact everything from interest rates on savings accounts to how much borrowers pay on their home, car and credit card loans. And this latest move from the Fed is just the beginning.

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