[mau man]

Anybody else concerned about what that may mean for our precious US dollar? I don't know, maybe it will be a good thing.

[CallSignBigRed]

Its suppose to be a show of confidence that our economy is improving meanwhile its really not.

[CleanSlate]

Increased interest rates mean a stronger dollar, from what I understand. But don't quote me on that. You never know with the financial world. The dollar was already strong with rates being near zero for years.

[Exergy]

Yes it means our economy is improving. However, when this happens the stock market temporarily will drop a few points.

It's a good thing.

[Road_Less_Taken]

A raise in the federal reserve rate signifies a raise in which money is leant from the fed to banks, also known as the overnight lending rate. An increase in this rate then in turn signals a raise in the prime rate at which the bank lends to consumers.

Overall the effects are that borrowing is more expensive and the U.S dollar will also increase against other currencies. Predicting how the stock market will react in the coming months is difficult to tell, but for those holding U.S dollars the value of the dollar will be strengthened. Often in turn other currencies and commodities such as oil and gold will weaken as they are priced in U.S dollar terms.