Shocked, if the US succeeds in raising interest rates this time, how serious will the economy be
The world is watching the US interest rate cut trend, but unexpectedly there is a big reversal! The US actually wants to raise the current interest rate range of 5.25% to 5.5% and raise interest rates! If it really does this, it will be a big trouble.
This is really shocking! The whole world is watching the US to see when it will cut interest rates, but in the end, there is a big reversal, saying that the US may raise interest rates! Isn't this teasing us?
1. You said that the US interest rate is now between 5.25% and 5.5%, which is already quite high. But they still want to raise it. Isn't it obvious that they want to cool down the economy? I am wondering, what are they thinking?
2. If the interest rate is really raised, it will be a big trouble. Think about it, once the interest rate is high, borrowing money will be expensive, and ordinary people and enterprises will have to tighten their belts to live. In this way, consumption and investment will be affected, and the economic growth rate may have to slow down.
3. Moreover, other countries will have to follow suit when the United States raises interest rates. Why? Because the US dollar is one of the most important currencies in the world. Once the United States raises interest rates, funds may flow back to the United States, and other countries' currencies may depreciate, which will put greater economic pressure.
4. To be honest, I am a little worried now. The US policy changes too quickly, which makes people confused. One moment it says that it will cut interest rates to stimulate the economy, and the next moment it says that it will raise interest rates to control inflation. What is going on?
In short, if the US interest rate hike plan is really implemented, the global economy will have to shake.
But the interest rate cut in September is a foregone conclusion, so there is no need to worry about the interest rate hike.