The only one who can make a rate cut have the effect of raising interest rates is the Federal Reserve.
The interest rate was supposed to be cut by 25 basis points, but the stock markets around the world exploded. If you don't know, you might think a war has begun. The Dow Jones fell by 2.58 points, falling for ten consecutive days, the first time in fifty years. The S&P 500 fell by three points, which was only a drop of 3.56 points. Tesla lost more than 960 billion in one day. This was supposed to be a rate cut, but the US dollar index rose sharply.
Then the others were in a bad situation. Gold and Bitcoin all fell, and the RMB also depreciated, with the offshore price reaching 7.32. Why is this happening? This is because of what the Fed Chairman said. He meant that the Fed will slow down the pace of interest rate cuts in the next three years. Originally, everyone thought that there would be four interest rate cuts next year, a total of 100 basis points.
Now, there may only be two cuts, 50 basis points, and a member of the Federal Reserve even voted against the rate cut. This shook the whole world.
Because before this, central banks around the world were cutting interest rates in advance, including Europe, Canada and us. This year, our LPR has been reduced by 60 basis points. Originally, everyone was thinking that the Fed had finally cut interest rates, and the pressure on central banks around the world was much less, so they could do a round of money printing. In this way, the assets of all countries could have a big increase, but unexpectedly, halfway through, the United States changed its mind.
Therefore, the Federal Reserve, which controls the global capital tap, is the biggest financial risk now. There is a reason why countries are increasingly dissatisfied with the hegemony of the US dollar. Then there will be a big drama to watch next. There will be a battle between Trump, who is about to take office as president, and the Federal Reserve.
Why is this? Because Trump has always advocated lowering interest rates. The depreciation of the dollar is more beneficial to the US manufacturing industry and the grassroots workers who support Trump. But the Federal Reserve does not care about him at all. The current chairman Powell was nominated by Trump in less than half a year, and the two of them fell out directly. The monetary policies of Trump and the Federal Reserve are very different, because the financial groups behind them are completely different from the ones he wants to deal with. If you trace the history of the Federal Reserve, it is actually a Jewish financial group.
After World War II, all the Fed chairmen were Jews. Therefore, many of the Fed's policies are most beneficial to the financial capital controlled by Jews. The real economy is not their main concern. Trump is backed by the Ansa consortium, and he has been suppressed and beaten by the Jewish consortium for many years. Biden himself said that he is a Jewish rich country advocate, so you can see that all his cabinet members are Jews, without exception.
Trump is the exact opposite. There is not a single Jewish person in his current team. So these are two groups of people. Whoever can control the monetary policy of the United States will have greater control and greater benefits. So in essence, this is a fight for the right to mint coins. Do you understand this?
However, the last president who fought with the Federal Reserve for the right to mint coins was Kennedy, and he was assassinated in the end. So how will Trump fight with the Federal Reserve? This will definitely be very exciting and will definitely have an impact on us. But the impact is limited.
In the past, the Federal Reserve has had many interest rate hike cycles, but we still carried out independent interest rate cuts. This moderately loose policy has been decided. In the final analysis, we still have to solve our internal problems first. Once these internal problems are solved, external pressure will not be a big problem.