FED Rate impact

[aztecstargazer]

I was watching the impact the FED interest rate would have on multiple markets today. I watched the EUR/USD jump up, I also saw the stock price for First Majestic Silver and First Mining Finance go up, and the spot price of silver and gold also jumped. 

This was the complete opposite of what I thought the markets would do. I figured the increased rate would increase demand for US currency and bonds. I thought this demand would drive investors out of stocks. I also thought this would lure investors away from precious metals. I remember a few months ago when the FED increased the interest rate, this is precisely what occurred. 

I'm just curious as to what the precious metals community thinks about central bank decisions? 

[Thelonerangershorse]

FED rate rise will strengthen the dollar against sterling causing an apparent rise in the UK price of gold.

[KDave]

I read that the fed are using a new measure of inflation which included asset prices showing inflation at 3%. Still think dollars at 1.5% are a good deal? Neither does anyone else. They can not keep interest rates low when inflation is this high. That is my thinking anyway. 

There is also the huge debt mountain looming over everything, we have gotten used to living in its shadow but it hasn't gone away, it has gotten bigger. Higher interest rates are going to make the threat it poses worse not better. 

What is ultimately happening here is the fed thinks it can put out signals and the market will react accordingly. The truth is they are a side show and raise because the market reality says they must not the other way around. 

[HawkHybrid]

 

HH

[Oldun]