Dive Brief:

• The U.S. Federal Reserve voted Wednesday to raise interest rates by 0.25% in a 10-0 decision. 
• The Fed said that it would raise rates in a "gradual" manner toward a long-term target of 3.5%, signaling there will likely be four rate hikes in 2016. 
• This is the first rate hike since 2006. The Fed said that the economy was ready for a rate hike given that "household spending and business fixed investment have been increasing at solid rates in recent months." 

Dive Insight:

The Fed typically initiates rate hikes if it has faith in the economy — a long-term outlook that is positive for retailers. But the short-term effects of this move could negatively impact consumer lending and spending, and access to capital for retail startups. 

While the dollar is likely to strengthen, retailers will most likely have to deal with a reactionary change in consumer spending. The hike will actually have a minimal impact on households finances, but it will have a psychological effect on purchasing habits. Purchases made with a loan, like a house or car, will become more expensive, as savings could most likely collect more interest in the bank. 

"A small rise will probably have a negligible impact on the finances of most households, especially when set against the backdrop of falling gas prices," Conlumino CEO Neil Saunders told CNBC. "But the reality matters less than the perception. Many people perceive a rate rise as a bad thing and fear it will be the start of a series of increases. That may well dampen propensity to spend as people prepare for tougher times ahead." 

Consumers having less money in the bank — or even the perception of less money in the bank — could lead to more bargain hunting among shoppers at a time when retailers are already struggling to reign in discounting. This could be especially true for lower- and middle-income households, a demographic that is already reluctant to spend.

Big-box chains such as Wal-Mart, which greatly rely on these shoppers, could feel the pinch and some pressure to expand their marketing efforts to middle- and upper-middle income households. Wal-Mart is already making moves in this direction, with the retirement of its longtime CMO in January and the hire of Michael Francis, largely credited with pioneering Target's "cheap-chic" image, as a consultant to help overhaul the company's marketing efforts. 

Along with the impact in consumer spending, smaller retail startups could be affected by a lack of easy funding opportunities in Silicon Valley. As it becomes more expensive for startups to borrow capital and maybe even raise it, the introduction of well-funded payment, delivery, and e-commerce startups may slow down compared to recent years. The amount of "unicorns," or startups valued at more than $1 billion, could decrease if investors become more stingy with their capital.

With these warnings, it should be noted that many saw this rate hike coming, and smart companies will already have adjusted their business plans accordingly. The coming rate hikes next year may have a negative impact on company valuations, and introduce further instability for businesses already struggling to reach profitability.