If you have a mortgage, carry credit cards and are considering a home equity loan to cope with soaring food and energy prices, you should be paying attention to what the Fed has to say.

If you are heavily invested in the stock, bond or real estate markets, the Fed's decision will directly have an impact on you over the months and coming years, no matter who gets into the White House. [Make sure you read the end of this article].

On Wednesday, the Federal Reserve held a key short-term interest rate steady, following a series of interest rates cuts - a move that signals to some that rates may soon change direction.

Many assume that means consumer lending rates will rise as well. But the central bank had cut rates seven times since September in an effort to bolster the lagging economy and spur economic growth. During that time, mortgage rates were increasing. So what's going on here? And what should consumers expect loan rates to do next?

HOW IT ALL SHAKES OUT

The fed funds rate is often considered a benchmark to set rates for consumers on many types of loans, from mortgages and home equity lines of credit to credit cards and business loans.

Generally, the Fed lowers rates when it is concerned about the economy slowing and raises rates when it is more worried about inflation. In times of lower interest rates, consumers tend to spend more because of the cheap cost of borrowing.

But, according to a recent article at CNN.com, people incorrectly equate the Federal Reserve's actions with changes in consumer interest rates, cautioned Eric Tyson, author of "Personal Finance for Dummies."

There is not a direct connection, he explained, but an indirect one. "Rates are set by market forces and they have been trending higher in part because of inflationary concerns and, in part, because of Fed expectations." So with inflation fears on the rise and many investors expecting the Fed to raise rates again, mortgage rates have already begun to tick higher.

Rates on 30-year fixed mortgages have surged to a 9-month high on growing concerns about inflation, according to a recent report by mortgage backer Freddie Mac.

And rather than track the fed funds rate, which is the rate banks charge one another for overnight loans, fixed mortgage rates are more closely aligned with the yield on the 10-year treasury note, which offers a long-term look at a fixed investment.