Federal Reserve Raises Rates to Slow Growth, Effects Mixed So Far

The Federal Reserve has raised interest rates to cool economic growth and curb inflation, causing uncertainty but the downturn hasn't happened yet.

Higher borrowing costs are weighing on business investment and some interest-rate-sensitive sectors like housing, but consumers are still spending.

The effects are clear in areas like stock prices, the value of the dollar, and business investment in equipment.

In housing and auto sales the effects are mixed due to shortages and pent-up demand.

Consumers are still spending on services, aided by a strong job market, allowing the economy to keep growing faster than expected.