The Fed's interest rate hike will make commodities fall. Fed's interest rate hike means that global money will flow into the United States in large quantities. Investors will invest in the American market in various ways, which will lead to the rise of the US dollar, and the commodities, precious metals and foreign exchange markets denominated in US dollars will all fall.

Investors should note that the Fed's interest rate hike is only one of the factors that affect the rise and fall of commodities, and the rise and fall of commodities is also affected by factors such as supply and demand and the amount of funds.

Raising interest rates is the behavior of the central bank of a country or region to raise interest rates, which increases the borrowing cost of commercial banks to the central bank, and then forces the market interest rate to increase. Raising interest rates can reduce money supply, curb consumption, curb inflation, encourage deposits, and slow down market speculation.

The Fed controls the "federal funds rate" in the United States by raising interest rates and lowering interest rates. After raising the federal funds rate in the United States, it means that the cost for other financial institutions to borrow money from the Federal Reserve will increase, so the loan interest rate of commercial banks to enterprises and individuals will also increase. In order to protect customers, the bank's deposit interest rate for depositors will also increase accordingly. (interest rate cuts are just the opposite, and the cost of borrowing money from the Federal Reserve by other financial institutions is reduced, so the loan interest rate in the market and the deposit interest rate of depositors will also be reduced accordingly. )

However, the interest rate adjustment is not directly adjusted after the announcement of 100 BP adjustment. This rate hike will have a downward transmission process. When FOMC sets the target of federal funds interest rate, it will change the circulation of money in the market through open market operation and realize the preset target interest rate. To achieve this goal, the Federal Reserve will sell bonds in the open market and withdraw money. At this time, the money held by financial institutions will decrease, and the interest rate of interbank loans will rise. If the Fed wants to lower the federal funds rate, it can do the opposite (buy bonds and release money).