US Fed raises a key rate, signals third hike later

That gauge is called core Personal Consumption Expenditures, and it was up just 1.5 percent in the 12 months ending in April. The FTSE 100 of Britain dropped 0.4 percent to 7,474.40. Each increase adversely affects developing countries that are in dollar dependence on the U.S. The gap between the poor and rich inhabitants of the planet becomes deeper.

RATE HIKE: The Federal Reserve raised interest rates for the third time since December, something investors had widely expected based on the Fed's recent statements.

The gold price in the global market saw huge fluctuations after the Fed rate hikes.

If it truly is indicative of a slowing economy this may put the Dollars at risk of further retreat as it may jeopardize the FOMC outlook of one additional rate hike beyond June, (many investors think the September meeting looks the most likely date for this 3rd hike).

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

The dollar continued to gain ground in United States trading and bond yields also moved higher while precious metals were unable to gain support from a decline in equity markets.

But they may still struggle to agree with the International Monetary Fund whether Greece should receive debt relief.

This evening the Central Bureau of Statistics will publish Israel's Consumer Price Index for May with economists expecting that it rose 0.3% over the month.

The Fed also raised its benchmark overnight rates by a quarter point to 1.00-1.25 percent as expected. Shanghai's Composite index edged 0.1 per cent lower to 3,128.29 and the S&P ASX 200 in Australia tumbled 1.1 per cent to 5,770.90. Shares of Elon Musk's electric auto company are up more than 75% so far this year.

ENERGY: Oil futures had plunged overnight after the US government said oil supplies shrank only slightly last week while gasoline stockpiles grew.

Brent crude, the worldwide benchmark, was down 12 cents a barrel at $46.88. Brent crude, used to price worldwide oils, rebounded, gaining 6 cents higher to $47.06 a barrel.

By contrast, the European Central Bank last week poured water over expectations that it would start to roll back its own huge money-printing programme or raise interest rates in the near future.

The WSJ Dollar Index was recently up 0.6% at 88.63, making dollar-denominated metals more expensive to other currency holders. The euro edged up to $1.1219 from $1.1217.

The central bank forecast another rate increase later this year, alongside efforts to reduce its trillion-dollar holdings of US government debt.

Closely watched trader Art Cashin doesn't believe the Fed's assurance that it plans to raise interest rates at least one more time this year.

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