Changes in the Federal Reserve's interest rates influence the world economy significantly. In the event that the United States has higher interest rates then foreign capital has the opportunity to make loans more expensive resulting in further economic development which further results in the dollar getting stronger. In the opposite case, when the Fed cuts interest rates, it is also not a good omen for emerging nations as it can lead to capital flight out of those countries which will have an effect on global financial conditions. The strategies of the Fed can also cause changes in stock trading strategies, changes in currencies and that will iteratively upset the financial markets.