This week, the US Federal Reserve meets to determine interest rate policy - and global markets are watching with bated breath. Expectations are that the rate will remain between 3.5% and 3.75%, where it has sat since January. But the real question is not this decision - it is the next one: whether and when the Fed will start cutting rates.

The context is complex: the US-Iran conflict is increasing inflationary pressure through higher oil prices. Lower rates stimulate spending - but risk accelerating inflation. Higher rates slow lending - but also cool the economy. Chair Powell must choose the lesser evil every Wednesday.

In parallel, the "Magnificent Seven" tech companies are releasing earnings: Alphabet, Amazon, Meta, Microsoft, Apple, plus data storage companies supporting AI infrastructure. The tech sector has been the only one growing amid geopolitical instability - investors are embracing AI companies while ignoring war risks. Whether that is rational or pure euphoria, this week's results will give the first indication.

For Macedonian citizens with loans, mortgages, or savings - US interest rate policy is not a distant concern. Through the European monetary system, Fed decisions echo all the way to a denar savings account.