US Federal Reserve Board is set to vote on whether to raise interest rates that could cause global financial crisis.

Ten voting members on the United States Federal Reserve Board have the power to influence the global economy. The Fed will vote this month on whether to raise interest rates. 

As the Central Bank of America, its main purpose is to provide a stable financial system for the United States. The Fed rate is an interest rate that is used solely among American banks.

But a rate increase could also mean a stronger dollar. It could make it harder for emerging markets to repay loans. And encourage investors to pull their money from emerging markets to put it back into the US economy.

After last week’s market plunge in China, where billions of dollars were lost, action from the Federal Reserve could lead to another global financial crisis.

There are risks to raising the rates. How should the Fed proceed?

Presenter: Mike Hanna

Guests:

Mike Norman - a foreign exchange trader and economist

Einar Tangen - economic affairs commentator at China Radio International

Jan Randolph - the director of sovereign risk analysis at IHS Global Insight