Rate Hike Sets Stage for Uneven Economic Growth

The Federal Reserve's decision to raise interest rates by a quarter percentage point has sparked concerns about its impact on an already uneven US economy.

Mortgage rates are expected to rise, making it even harder for people to buy homes, while credit card and auto loan debt becomes more expensive.

The Fed justified the move, citing 'elevated' inflation, but some worry that it will further slow down weaker sectors of the economy, such as housing.

In contrast, investment in artificial intelligence (AI) is booming, with companies spending billions on computing infrastructure and expecting high returns.