The Federal Reserve is equivalent to the People's Bank of China in China, which is the central banking system in the United States. The Fed's interest rate hike means that the deposit interest rate in the United States has increased. Because the dollar is an international currency, people will consider putting their deposits in banks to earn interest. Naturally, if the dollar in circulation decreases, the dollar will appreciate and the RMB will depreciate relatively.

The impact of the Fed's interest rate hike on the market and the people is as follows:

1. If the Federal Reserve raises interest rates, the deposits in the bank will increase, so the amount used for market consumption will decrease, which will indirectly lead to a decrease in the sales of China's export trade;

2. After the Fed raises interest rates, the US dollar will appreciate, so other countries' currencies, including RMB, will depreciate in the short term in the money market, which will directly lead to the intensification of capital outflow in China;

3. If the dollar appreciates, the price of commodities denominated in dollars will fall. For example, foreign oil prices will fall, which will indirectly have a negative effect on the adjustment of China oil prices and have to be lowered;

4. In the long run, if the Fed raises interest rates for a period of time and then cuts interest rates, then the RMB will rise against the US dollar, foreign currencies such as RMB will rise, and a large amount of capital will flow into China.

For ordinary people, the Fed's interest rate hike has no direct impact, and because of the value and importance of the RMB in the foreign exchange market, the RMB will not be greatly affected by depreciation, and the country will adjust its macroeconomic policies accordingly, so don't worry.