Gold up 1% as Fed raises rate by 0.25%
After months of deliberation the Federal Reserve increased interest rates by 0.25%. This is the first increase in 7 years and could potentially send shockwaves across the financial markets.
Investors worry the rate rise will boost the value of U.S. dollar and increase the borrowing costs for countries with debt denominated in the U.S. dollars. Since the crash of 2008 banks have taken money created by quantitative easing and lent it to emerging market economies and captured the spread.
The rate rise will also increase the cost of borrowing for U.S consumers and could potentially choke of the recovery. With ...