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The Federal Reserve is raising interest rates.

FOX's Jon Decker reports from Washington:

After seven years of record lows, policy makers at the Federal Reserve followed through, as expected, and announced a quarter point interest rate hike.

The Fed signaled that further rate hikes will likely be made slowly as the economy strengthens further.

The rate hike could have huge implications for the economy and for consumers. Because the short-term rates can ultimately affect the rates charged on credit cards, loans and savings accounts, it's likely that the move will eventually hit most Americans in their wallet.

Today's interest rate hike could also could push up yields on the long-term bonds used to set mortgage rates. This could lead to higher borrowing costs for home buyers.

The Fed has kept its benchmark interest rate near zero since December 2008 in an effort to stimulate the economy. By keeping rates low, the Fed made it cheaper for consumers to borrow money and spend more.