Global stocks sink after Fed says US rates will rise ‘soon’

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Global stock markets and Wall Street futures have sunk after the Federal Reserve indicated it will raise interest rates soon to cool inflation. London and Frankfurt opened lower. Market benchmarks in Tokyo and Seoul fell more than 3%. The U.S. central bank said it “expects it will soon be appropriate” to raise rates. Investors expect as many as four increases this year, starting in March. The Fed said monthly bond purchases that push down long-term rates would be phased out in March. Near-zero interest rates helped to boost stock prices for nearly two years, but markets have been volatile since Fed officials said in mid-December stimulus might be wound down faster to fight inflation.