Fed Policy Has the Emerging World Lamenting the Dollar’s Dominance Read more: Fed Policy Has the Emerging World Lamenting the Dollar’s Dominance

The economies of the developing world are facing obstacles for the future as the Federal Reserve has stated that it will scale back on its efforts to boost the U.S. economy.  Due to these statements, investors have been taking their money back, which has caused devaluation of currencies in various developing countries, such as South Africa.  As a result, central banks in other countries have responded by increasing their interest rates to lessen the effect of the Federal Bank's decision on their own currencies.  This is one of the main complaints of the U.S. Federal Bank.  Although the U.S. Federal Bank's decisions affects the world economy, some have criticized the U.S. Federal Bank for being primarily concerned with inflation and unemployment of only the U.S. economy.