What’s so important about the Federal Reserve’s interest rate?

That’s nearly a sideshow.

The Fed’s hair of the dog remedy for the great recession was predicated on tempting investors into speculations which might themselves create more economic activity.

“I’m going to take the dovish side of the argument and say I don’t think the economy is ready”, said Pedro da Costa, editorial fellow at the institute.

However, since the middle of the year, fluctuations in USA interest rate expectations have dominated trade in precious metals. It could also impact the financial markets negatively in the near term.

Lucidus Capital Partners, a high-yield credit fund, said on Monday it would give investors back US$900 million it managed, following close on the heels of upsets at other funds; Third Avenue Capital, which shut a similar $788 million fund and hedge fund Stone Lion Capital, which suspended redemptions.

So now the Fed wants to get back to more normal conditions. Boston Fed President Eric Rosengren, for one, thinks the Fed would have to seriously consider increasing its inflation target if it returns to the lower zero bound next recession. She might be able to do so by accompanying a rate hike Wednesday with assurances that the pace of future moves would be modest and gradual and would occur only if the economy further improved. European shares are tracking the anticipated open on Wall Street.

That hope that the Fed will stress it plans a softly softly approach was helping soothe jittery markets that have been roiled again over the last couple of weeks by a fresh slump in oil prices and fall in China’s increasingly influential yuan. Typically, all 10 members vote the same way or, at least, 9 of the 10 do. It would be the first rate hike in more than nine years. “Overall if it goes as expected it should reduce the uncertainty around the Fed policy”, ING analysts said in a morning note.

Some industry watchers suspect that price declines in sectors like energy and health care may not continue, portending more inflation. But the key chart to look at this time is the so-called Dot plot.

An increase in the Fed’s benchmark rate, from near zero, would be the first since June 29, 2006.

The turn toward higher rates has been months in the making.

Markets and analysts will focus on the exact language the Fed uses in its statement to justify the hike and describe how it will evaluate the timing of subsequent steps.

The expectation is that the Dots are going to come down. Many believed an interest rake hike will occur, putting gold under pressure.

The changes that the Fed hike will be “one and done” – the only increase of 2016 – are equal to the threat of a zombie apocalypse, he adds. If that did occur, Yellen said it would suggest that inflation would rise toward the Fed’s 2 percent goal.

Raising the rate by a notch is not a big change in monetary policy – “a baby step”, said Hoffman – but after almost three years preparing the ground, it is a monumental stride for the FOMC.