What do Federal Reserve interest rate hikes mean for Main Street?

The Federal Reserve is expected to announce a 50-basis point interest rate hike on Wednesday in what will be the second of several anticipated increases this year as the central bank seeks to combat soaring inflation, which is at a high not seen in four decades.

While the Fed's actions are closely monitored by Wall Street, people on Main Street will be impacted, too and should expect to pay more for car loans, mortgages and credit card balances.

John Lonski, president of Thru the Cycle and former chief capital markets economist at Moody's Analytics, says consumers might not feel the pain of the Fed's initial rate increase of 25 basis points earlier this year, but they will certainly notice the hikes if they continue through 2022 as policymakers have signaled.

After the 50 basis point hike on Wednesday, some economists say the Fed may be even more aggressive at other meetings this year, perhaps raising rates by 75 basis points.