“Although they (US) are doing it for inflation, but it would impact their economy in multiple ways. It would definitely impact their consumer spending, investments because loan costs would go up. US will get impacted. In the process they may perhaps control inflation. The very nature of the move is to control cost and growth so it will come at the cost of growth. Finances flowing out would have a devastating impact on developing economies. In that case, there currency would depreciate, making inflation much higher. That would also impact the foreign exchange reserves. All these taken together, looks like we are anticipating a demand-driven slowdown,” said Rohit Azad, professor of economics at Jawaharlal Nehru University.