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Fed declares end to debt crisis, world turns wary

The countries most affected by US monetary policy have no say over its formulation. As one ex-treasury secretary put it, the dollar is "our currency, but your problem".

Due to the Fed's rate hike, the cost of consumer lending has already edged upwards. More expensive loans will discourage buying of houses, cars and goods purchased with credit cards - one reason why some economists fear that higher interest rates will damage the economy.

New Haven

THE Fed's end-of-year decision to raise the interest rate was presented as the "normalisation" of monetary policy and the end of the era of the 2007-2008 financial crisis. Ending seven years of loose monetary policy will not only shape US financial markets, but will have