These changes will affect the prime interest rate, the rate banks charge their best and most creditworthy customers. The stock market retreats or advances. Your savings generate higher or lower returns. Consumer spending rises or falls. Credit card rates increase or decrease.
Unemployment goes up or down.
Consumers aren't the only ones borrowing money. Businesses also borrow to expand. When interest rates go up, the economy tends to slow because it becomes more expensive to borrow money. This can affect businesses' ability to expand, for example, or consumers' ability to buy a home. Conversely, when interest rates fall, it becomes easier to borrow money.