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Federal Reserve (the Fed)
The Federal Reserve sets short-term interest rates in the United States and manages the supply of dollars. Because the dollar is the world’s main reserve currency, the Fed’s choices affect borrowing costs, capital flows and exchange rates far beyond America.
Why It Matters
When the Fed raises rates, money tends to flow out of countries like India; when it cuts, money tends to flow in.
In India
The Fed cut rates in September 2025 for the first time that year. In January 2026, the nomination of Kevin Warsh as its next chair triggered one of the biggest one-day falls in gold and silver in decades.