The Federal Reserve held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the U.S. central bank's 2% target.

How this affects you

The Fed's decision to hold rates while signaling a future hike indicates a shift in monetary policy, potentially leading to higher borrowing costs for consumers and businesses in the U.S. later this year. This move also caused Treasury yields to rise, U.S. stocks to fall modestly, and the dollar to gain against other currencies.