Let us introduce you to a committee of about a dozen people who sit around a large wooden table in Washington, several times a year, and decide something that seems to have nothing to do with you. They set the interest rate for the United States of America. And yet, when they finish their meeting and read out their decision, the rupee in your wallet, the shares in your portfolio, and even the gold in your locker can all shift a little.
They are the US Federal Reserve “the Fed” and this September, they raised their rate by 25Bps. We want to explain, in the simplest possible way, why a decision made so far away lands so close to home. And then we want to persuade you to stop losing sleep over it.