What's going on?

The US Federal Reserve decided NOT to raise interest rates at its meeting on Sept. 17 � a significant part of the market thought it would raise rates for the first time since the financial crisis.

What does this mean?

Interest rates will, for now, remain at the historically low level of 0-0.25%. Low interest rates help spur economic activity by making it cheaper for people and companies to borrow money � that money is then used to do things like buy houses or cars and build factories that create jobs. So in that sense, the news today is good for the US economy. However, for the first time, the Fed explicitly mentioned concern for�China and emerging markets as one reason why they did not raise rates. So, while the Fed has decided to remain extremely accommodative to the economy � it is also nervous about developments overseas.

Why should I care?

1. Today�s decision made it less likely that the Fed will raise rates before the end of the year � which is probably good for US and emerging market stocks in particular (and bad for the US dollar).
2. Over the long term, though, the Fed�s caution might be warranted. The economic weakness in China and emerging markets could continue to weigh on global stocks in the future. Which could mean interest rates in America (and globally) would�remain lower for longer than currently expected.

Click here for more information on how interest rates are important to you and the economy.