Federal Reserve Chairman Alan Greenspan made it clear in 2004 that Federal Reserve would be increasing short-term interest rates at a “measured pace.” With US Dollar at its weakest point in seven years, oil prices unstable and evaluation of other economic indicators, Fed Funds Rate was hiked seven times from 1.0% to 2.75% since June 2004 in an effort to curb inflation. Some economists believe it won’t stop until Fed Fund Rate hits 4.0%.

Consumers with revolving debt accounts tied to prime rate have seen effect through rising interest rate charges, as prime rate always rides 3% above current Fed Funds Rate.

Mortgage interest rates are affected indirectly by these changes. An increase in Fed Funds Rate has an impact on financial markets as a whole, but mortgage rates may go up or down based on perception investors have of current economic statistics and their reaction to Federal Reserve’s after-meeting statements.

In general, when economic data indicates we have a slow-down occurring in our economy, investors tend to sell off stocks and reallocate that money to safe haven of bonds and mortgage-backed securities. The purchase of mortgage-backed securities drives interest rates down. When economic data says there is growth in economy, stock market typically rallies and mortgage-backed securities sell off to fuel that stock market rally. This drives mortgage interest rates up.

The next time you open up your credit card statement, take a real close look to all "junk" inside particularly very hard to read insert Call "changes to you credit card agreement". That's right one you always throw away or say that I'll read it later and never really do. Since you neglected to read all that fine print you just threw away you should realize what you just did. In essence you just agreed to all changes credit card company made IF (and that's a big "IF") you use your credit card again. Most people do and don't even read all "that stuff" in envelope with their statement. Since these were automatic changes effective immediately or on a specific date that they set in new terms and conditions.

Some of ones credit card companies use most often include, but not limited to, changing your APR (annual percentage rates) you thought that 0% would last forever? Changes to your existing fees and/or adding new fees. Let us not forget that they also like to change your grace period, time that you can pay it off and not receive a finance charge.