Interest rate cuts? What does it have to do with me? Such a profound issue seems to have nothing to do with me?
Generally speaking, if the United States cuts interest rates, the rest of the world will also cut interest rates, and Chinese assets may rise, but this will be affected by policies and external conditions.
1. Declining loan interest rates
Home loan: If you plan to take out a loan to purchase a fixed asset, a rate cut usually means a lower mortgage rate, lower mortgage costs, less monthly interest payments, and a relatively lower cost of buying a home.
Other loans, such as auto loans and credit card interest rates, are also likely to fall. For those with outstanding loans, reduced interest can ease the repayment burden.
2. Reduced revenue
Savings and deposit benefits: A rate cut may lead to a decrease in the interest rate on bank deposits, resulting in less income from saving money.
Stock market: Lower borrowing costs and reduced corporate costs are conducive to corporate expansion and profitability, which may push up the stock market.
3. Consumer loans are easier to obtain
With low interest rates, banks may be more willing to lend to consumers.
4. Inflationary pressure
Lowering interest rates can sometimes increase the amount of money circulating in the market, potentially leading to higher inflation.
In general, the Fed's rate cuts will make borrowing cheaper, reduce investment returns, and may stimulate economic growth, but they may also bring inflation risks such as rising prices. #降息预期 #大选