Copper Falls Most in Week as Fed Signals Higher Interest Rates

Copper futures in New York fell the most in more than a week after the Federal Reserve signaled it would raise borrowing costs next year, spurring concern that the economy will slow and metals demand will wane.

The Fed yesterday released forecasts showing more officials predict the benchmark interest rate, now close to zero, will rise at least to 1 percent at the end of 2015 and 2.25 percent a year later, higher than previously estimated. Borrowing costs might start rising “around six months” after the central bank stops buying bonds, Chair Janet Yellen said.