Woodford Funds: Fed Rate Rise is Bad News for Global Economy

Although an increase in US interest rates may be justified for the US economy, it is far from ideal for the rest of the world. We could be in for a bumpy ride next year 

Woodford Funds 17 December, 2015 | 11:48AM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Mitchell Fraser-Jones of Woodford Funds discusses the global impact of the Fed raising rates.

The Federal Reserve has just announced the first increase in US interest rates in nearly ten years. Janet Yellen, Chair of the Fed, recently described the need for the rate hike as being “a testament… to how far our economy has come in recovering from the effects of the financial crisis and the Great Recession”.

When the cost of the dollar rises, it has an impact on individuals, companies and sovereigns 

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About Author

Woodford Funds  is an investment management company founded by UK equity income specialist Neil Woodford.

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