The Federal Reserve's decision to raise interest rates to their highest level in over two decades has had a profound impact on the US economy. While the move has successfully cooled down the overheated economy, it has also led to some unexpected consequences that are affecting various segments of the population differently.

On the one hand, high-income households are thriving in the current environment, benefiting from rising stock markets and property values. Companies are also taking advantage of the situation, borrowing rapidly to invest in their growth. Consumers, too, continue to spend, seemingly unfazed by the increased borrowing costs. However, beneath the surface, a different story is unfolding.

The rise in interest rates is finally taking its toll on other areas of the economy. Americans are finding it harder to secure jobs, leading to a rise in the unemployment rate. Small businesses, the backbone of the US economy, are struggling to cope with higher loan costs, which is affecting their ability to operate and grow. Low-income families, already vulnerable to financial shocks, are falling behind on car loans and credit card payments, threatening their financial stability.

The mixed results of the interest rate hike have raised concerns among economists, who fear that the economy may be weakening more quickly than anticipated. Citigroup economist Veronica Clark notes that the economy has softened in recent months, which may prompt Federal Reserve officials to cut interest rates sooner than expected.

As the situation continues to unfold, it remains to be seen how the Federal Reserve will balance the need to control inflation with the risk of stifling economic growth. One thing is certain, however: the impact of higher interest rates will be felt across the economy, and policymakers must be vigilant in their response to mitigate any adverse effects.