TANZANIA, Sept. 29 -- FOR a Tanzanian investor holding a Treasury bond, shares in a listed bank, or simply shillings in a bank account, the latest decision by the US Federal Reserve may seem like something happening far away.

In reality, the consequences can travel from Washington to Dodoma and Dar es Salaam through the dollar, the shilling, interest rates, capital flows and asset prices.

On September 16, the Federal Reserve raised its federal funds target range by 25 basis points to 3.75-4.00 per cent, saying inflation in the United States, reported at 3.4 per cent in August, remained elevated and that the move would support a return towards its two per cent inflation objective.

For Tanzania, therefore, the important question is not w...