India, Sept. 17 -- The Federal Reserve raised its interest rate this week, marking its first rate hike in more than three years. The Fed's target rate is now 3.75% to 4%. The central bank is trying to control inflation, which has stayed above its 2% target in recent months.

The latest Fed hike could be the start of more rate increases, rather than a one-time move. CBS News said further hikes could come if unemployment stays steady and inflation continues to rise. The Fed's decision affects both borrowers and savers. Higher rates can increase borrowing costs for loans and credit cards, while people who save money can benefit from higher returns.

Mortgage rates do not move directly with the Fed's policy rate. However, the Fed's decisions ...