The Federal Reserve has raised rates too soon

There is a 50/50 probability that this hike will have to be reversed and the worry is that this might mean rates going negative

Good retail sales numbers made a rate hike by the US Federal Reserve almost certain. The rise that finally did take place on Wednesday was well signalled to markets that cheered the rise, with Dow, Nasdaq and the S&P all climbing on the day by more than 1%. Thursday, however, the market was down.

Related: Federal Reserve announces first rise in US interest rates since 2006

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