Individuals are affected through increases to credit card and mortgage interest rates.
-This has the effect of decreasing the amount of money consumers can spend.
-Businesses are also indirectly affected by an increase in the federal funds rate.
-Less business spending can slow down the growth of a company, resulting in decreases in profit.
Stock Price Effects
The whole market, or the indexes (like the Dow Jones Industrial Average or the S&P 500) that many people equate with the market, will go down.
For many investors, a declining market or stock price is not a desirable outcome.