How can the Fed's actions affect you?

When will the Federal Reserve raise interest rates? This question has been on the minds of economists and financial market prognosticators for quite some time now. But what does it mean to you, as an individual investor?

First of all, it’s important to understand just what is meant by “raising rates.” The Federal Reserve, or the “Fed,” directly controls short-term interest rates, although, through various measures, it can also affect long-term rates. Typically, the Fed will lower short-term rates to stimulate the economy. Conversely, the Fed will raise rates to slow down the economy if it seem...