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US stocks open higher ahead of Fed decision on rates

<p>Federal interest rates will (likely) increase. </p><p>"Doing so will be a testament also to how far our economy has come in recovering from the effects of the financial crisis and the Great Recession," Federal Reserve Chair Janet Yellen <a href="http://www.c-span.org/video/?401470-1/federal-reserve-chair-janet-yellen-us-economy" target="_blank">said at The Economic Club in Washington, D.C.</a></p><p>Don't worry. It'll only be a small increase at first: probably about 0.25 percent. That's not much.</p><p>So what will it mean for folks with auto loans, student loans, credit card debt or savings accounts?</p><p>Well, if you're taking out a $25,000 auto loan, a quarter-point increase means you'll only be paying about $3 more a month. Not bad.</p><p>Student loans depend on what type of rate you have: variable or fixed. Fixed rates won't change; those are locked in. This includes any federal student loans. Variable-rate loans will keep pace with increases to the federal interest rate.</p><p>Likewise, credit card rates <a href="http://www.usatoday.com/story/money/2015/12/14/fed-rate-hike-impact/77300960/" target="_blank">will go up at a similar pace</a>. Every time the fed raises its interest rate, the rate on cards will go up as well.</p><p>As for savings, there is some good news here. Your rates will go up — in time.</p><p>The main thing to keep in mind with the federal interest rate hike is that it's small at first. Because of that, its effects are small — at first. As rates continue to go up, though, you may start to feel it more.</p><p><i>This video includes music "tubshop" from </i><i><a href="http://birocratic.bandcamp.com/track/tubshop" target="_blank">Birocratic / CC BY 3.0</a></i><i>.</i></p>
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NEW YORK (AP) — Stocks are opening higher, led by gains in banking shares ahead of an interest rate decision by the Federal Reserve.

JPMorgan Chase and Bank of America each rose 1 percent in early trading Wednesday.

Traders are expecting the Fed to nudge interest rates higher at its policy meeting later in the day, which could make it more profitable for banks to loan money.

The Dow Jones industrial average rose 149 points, or 0.9 percent, to 17,670 as of 9:35 a.m. Eastern time.

The Standard & Poor's 500 index climbed 14 points, or 0.7 percent, to 2,057. The Nasdaq composite rose 37 points, or 0.7 percent, to 5,032.

Bond prices didn't move much. The yield on the 10-year Treasury note held steady at 2.28 percent.