Published Paper Details:

U.S. Federal Reserve changes the Fed Rate to control inflation. Consequently, Changes in the Fed Rate put pressure on developing economies (especially India). Likewise, the Reserve Bank of India changes its Repo Rate on its stance and on account of changes in the Fed Rate to attract the Foreign Institutional investors and Foreign Direct Investments. The purpose of this study is to find the relationship between the Fed rate and the Indian repo rate in the respective countries (U.S. and India), with that of inflation only. Various finance experts believe that the Indian Repo Rate is affected by the Fed rate and other factors like the Dollar Index, Gold rate, US Federal rate, inflation (in the US, India, and the world), and oil prices.The Federal Reserve (U.S.) and the Reserve Bank of India (India) control monetary policy in the respective countries to maintain the excess supply of money to control inflation.The article highlights various suggestions and conclusions. Growth rate and foreign exchange reserves both may positively or negatively affect. Likewise, imports or exports may increase or decrease. FIIs may be tempted to invest/disinvest more by bringing huge volatility in the stock market