Fed Hikes Rates, World Reacts
A quarter point rise in US interest rates, the first in seven years. A positive early response, but could there be unforeseen risks? Reactions from the US, Europe and Hong Kong.
We consider the Federal Reserve interest rates hike - 25 basis points up after some seven years of being virtually zero. It's been hailed as an historic step, the end of a low interest rate era. But what difference will it make to Americans and to the rest of the world? We get a range of reactions from emerging markets experts such as emerging market investor Jerome Booth, former IMF chief economist Simon Johnson, as well as Frederic Neumann - the head of Asian economics at HSBC in Hong Kong. So far the markets have seemed enthusiastic, but could the end of cheap money yet lead to unforeseen turbulence?
(Picture: A trader at the New York Stock Exchange looks up as the Federal Reserve's rate rise is broadcast; Credit: Spencer Platt/Getty Images)