The Federal Reserve on Wednesday raised its benchmark short-term rate half a percentage point — double the usual amount.

The change follows a quarter-point increase in March as the government tries to tamp down inflation, which has hit a 40-year high and continues to rise. The stock market reaction ahead of the announcement was mixed, but bond yields rose.

How will this affect the average American? Inflation has made food, gas, and other commodities more expensive for consumers.

Americans have also been grappling with a hot housing market, with prices up 35 percent since the COVID-19 pandemic started two years ago, according to Reuters.

A rise in mortgage rates following the change could lower housing demand, and some local markets have already seen a slight drop off in recent weeks, The Washington Post reported. The market is also suffering from a lack of available homes, something the Fed’s interest rate can’t change.

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.