The Federal Reserve System, commonly referred to as the “Fed,” is the central banking system of the United States. While it has no direct role in the Indian stock market, it can impact it indirectly.
Role in the Global Financial Market: The Fed plays a crucial role in the global financial market by controlling the money supply, setting interest rates, and implementing monetary policies that affect the economy. Its actions and policies can have a significant impact on the global financial market, including the Indian stock market.
Impact on Indian Stock Market: The Indian stock market is closely tied to the global financial market and can be impacted by the Fed’s monetary policies and interest rate decisions. For example, changes in interest rates can impact the value of the rupee against the US dollar, which can affect the Indian stock market. Similarly, monetary policies implemented by the Fed can impact the global economy, including the Indian economy, and therefore, the Indian stock market.