Interest rates are set to rise. For consumers, it could "add up quickly."

Americans are likely to find themselves paying more for loans and credit this year, with the Federal Reserve signaling on Wednesday that it plans to start boosting its short-term interest rate in March from its current level of close to zero. 

That shift is a response to the highest inflation in four decades, with prices jumping 7% in December — a trend that economists think is likely to continue for months. Tightening monetary policy raises the costs of borrowing for consumers and businesses, weakening demand and curbing prices. 

But it could also pinch people's budgets as the Fed continues to normalize policy over the rest of 2022. Wall Street analysts expect the central bank to lift rates three or four times this year, with each increase boosting the benchmark federal funds rate by 0.25%, or even 0.5% if inflation persists and the Fed decides to slam on the brakes. For consumers, that likely means higher credit card rates and more expensive loans.