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How The Fed’s interest rate hike is going to impact you

WASHINGTON, D.C. (CNN)- For the third time this year, The Fed is raising interest rates. This time, it's going up by a quarter of a percentage point, from 2 to 2.25%.

The hike is likely going to impact the cost of housing, cars, student loans, and even the interest on your credit card. The Federal Reserve says the economy is strong.

"Growth is running at a healthy clip," Board Chair Jerome Powell said. "Unemployment is low. The number of people working is rising steadily and wages are up."

Every time rates go up, banks find ways to pass on those extra costs to consumers. Economic experts say nearly everyone will see interest rates go up.

"If you have a car loan, you've got a credit card, you're gonna have to start paying more money each month," American Institute for Economic Research President Edward Stringham said.

They also say people with variable mortgage rates will also see changes in the long term, and if you rent, experts say landlords may pass those costs down to you.

"We've got prices increasing in all of the economy," Stringham said. "If the price of the landlord goes up, that also means the price for the tenant goes up."

Certain car and student loans may also be impacted. Since 2008, interest rates have been close to zero as part of the Fed's strategy to get out of the recession. As the economy improved, The Fed has been increasing rates little by little.

"This gradual return to normal is helping to sustain this strong economy for the longer run benefit for all Americans," Powell said.

Interest rates and the latest round of tariffs with China were the basis of our conversation Monday, October 1 for Your Money with Investment Advisor Mark Grywacheski. To see the interview, click on the video above.

Your Money With Mark airs live on Good Morning Quad Cities every Monday between 5 a.m. and 5:30 a.m. To live stream our newscast from our website, click here.