Emerging markets face risk from US Fed rate hike
The Dollar Business Bureau As the US Federal Reserve is likely to increase the interest rate on Wednesday for the first time since 2006, Moody’s Investors Service on Tuesday said the move may pose a threat to some emerging markets. According to analysts, the US central bank in its Federal Open Market Committee (FOMC) meeting to be held on Wednesday is expected to announce a hike of a quarter percentage points in the short-term interest rate. While the move would “confirm that the US economic expansion remains on track”, higher rates could bring “risks to some emerging market sovereigns”, said Moody's Investors Service. The direct impact of any rate increase on the US economy should be minimal as the US ...
