Global shares fall on Fed rate hike, plunge in oil prices

FOMC to hike US interest rates today

"I don't think it will affect the long-term mortgage rates that most people take, but things like credit cards, home equity lines, short term auto loans, things like that would typically go up by an equal amount, a quarter of a percentage point". That rate is closely tied to interest rates on mortgages and other kinds of loans.

Those factors mean the Fed's preferred inflation measure will remain below the 2 percent target for some time, but will gradually rise to the target level over "the medium term". USA employers continue to add jobs at a steady rate.

The US Federal Reserve last night raised interest rates by a further 25 basis points, its second hike of the year, but given the slowing economic data, investors are split on whether a third increase will be seen this year.

In discussing the rate hike, the committee referenced the pickup in household spending in recent months and continued improvement in investment spending.

Fed chairperson Janet Yellen said the move reflects progress made by the economy.

The Fed also gave a first clear outline on its plan to reduce its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities, most of which were purchased in the wake of the 2007-2009 financial crisis and recession.

Wife of James Hodgkinson: 'I was shocked'
Hodgkinson, a 66-year-old former home builder and lead removal contractor, had run-ins with police but no felony convictions. Five people were wounded on Wednesday morning when a gunman opened fire at a baseball field in Alexandria, Virginia.

The move registered swiftly in markets, with the territory's one-month interbank rate, known as HIBOR, jumping the most in six months, and a gauge of property stocks in Hong Kong retreating more than 1 percent.

In their quarterly projections, Fed officials saw the economy growing slightly faster than previously forecast, with GDP up 2.2 per cent this year, a tenth of a percentage point higher than forecast in March.

USA stocks mostly fell while the dollar cut its losses on Wednesday after the Federal Reserve delivered a widely expected U.S. interest rate hike. A local expert says the USA rate hike could actually help Korea resolve its massive household debt problem, which topped a staggering 1.2-trillion US dollars in the first quarter.

We expect another rate hike and some balance sheet normalisation before the end of the year'. Only Neel Kashkari, president of the Minneapolis Fed bank, opposed the increase.

World stock markets and the dollar are firm ahead of an expected interest rate increase by the U.S. Federal Reserve.

In a separate report, the department announced that US import prices declined 0.3 percent in May after increasing 0.2 percent in April, while the price index for USA exports declined 0.7 percent in May following a 0.2-percent advance in April.

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