Rising interest rates in US will hinder foreign economies

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — When the Federal Reserve raises interest rates — as it did Wednesday — the impact doesn’t stop with U.S. homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans. The fallout can roll beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique and others in poorer countries around the world. The managing director of the International Monetary Fund was worried enough last month to warn the Fed and other rate-hiking central banks to stay “mindful of the spillover risks to vulnerable emerging and developing economies.’’