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If you ever take out a mortgage, use a credit card or simply put your money in a savings account, chances are you will see some effect from the federal funds rate.The federal funds rate is the interest rate charged by banks to borrow from each other overnight. This is influenced by the Federal Reserve which sets a target range for the rate through its monetary policy decisions.The Fed's policy committee voted unanimously recently to keep the Fed Funds Rate flat at a range of 4.25 - 4.50 where it has been parked since December.The Federal Reserve lowers interest rates when it wants to stimulate the economy and raises them to cool the economy. When interest rates are low, you might use your credit card more often, since the payments will be lower.On the other hand, the Federal Reserve raises interest rates when prices grow too fast. This discourages people from borrowing money because the interest rate is high.The central bank sets the cost of borrowing between banks, and that cost forms the basis of consumer loans such as mortgages, auto loans, and credit cards. Banks may absorb the increase or decrease of these interest rates.See how changes in the federal funds rate—whether it hikes, stays flat, or lowers—can affect your credit cards, auto loans, mortgage, savings account, and bonds.