Who are the winners and losers of the Fed hiking interest rates?

The Federal Reserve has hiked its benchmark interest rate by 0.75%.

But what does that actually mean for hundreds of millions of Americans – Americans who have jobs, who buy things, who have bank accounts?

In short, interest rates are the Federal Reserve's main tool to combat inflation. Inflation is driven by strong consumer demand. By raising interest rates, which makes things more expensive, the Fed is hoping to dampen Americans' willingness to spend money.

"It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all," said Federal Reserve chairman Jerome Powell at a press conference after Wednesday's meeting.

And the Fed will continue to raise rates as needed throughout the year if inflation doesn't abate, Powell said.