Xiaobai feels that it makes sense

Why doesn't the US cut interest rates?

The US is now in a dilemma, it can't cut interest rates or not cut interest rates.
If interest rates are cut:
First, capital will flow back to Europe and China, which means that the two years of the Russian-Ukrainian war have been in vain, and Europe will also recover blood.
Second, inflation will soar immediately, which is equivalent to exploding on the spot.
Third, the US dollar will depreciate immediately, and China will follow (with 4 trillion foreign exchange, we can afford it), and cheap Chinese goods will flow into the US at an accelerated rate. The trade war and manufacturing return caused by the Trump and Deng administrations have been in vain.
Fourth, the US dollar depreciates, and China does not follow. Soon, China's GDP denominated in US dollars is likely to reach more than 85% of that of the United States. This will definitely boost confidence in the Chinese economy and hit confidence in the US economy. Of course, China does not want to be the first at present, and the United States does not want to lose its first place. I think we will follow the depreciation.
Fifth, many countries with bankrupt governments (Egypt, Argentina, Brazil) can breathe a sigh of relief, which the United States does not want to see.
If interest rates are not cut:
First, the United States is almost unable to bear the interest on US debt. So the purpose of Yellen's visit to China two days ago was to sell US debt, reduce the pressure of US debt, and then cut interest rates to achieve a soft landing.
Second, the high interest rates in the United States have further led to the hollowing out of the US manufacturing industry, the financialization of the economic structure, and accelerated the unemployment rate in the United States.
Third, the high interest rates have made Britain, Japan, and South Korea unable to bear it. These three solid lackeys of the United States have been overwhelmed by the US dollar interest rate hike, and the economy is also being drained of funds by the US dollar interest rate hike.
Fourth, it is still US debt. The interest rate hike has caused the US government to pay a huge amount of interest. Now the printing press alone can no longer solve the problem. It is very likely to trigger a US debt crisis. When the US debt crisis breaks out, the oil-dollar system will collapse.
Fifth, the US interest rate hike was originally intended to explode China's real estate. At first, it did have some effect, but the effect was very limited. I really don't know what technical means China used to make the real estate industry explode in succession without a debt crisis, exchange rate depreciation, and bank bad debt explosion. In the end, even the CPI was very low, which is incredible. I can only say that the top leaders are too awesome.
Based on my limited knowledge of economics, raising or lowering interest rates is just a technical means of economic operation. The essence is that the U.S. dollar now has no other anchor except oil, and the Middle East is not peaceful at the moment. The petrodollar system is also being infiltrated by China.The US dollar needs a new anchor, and the anchor of the RMB is cheap domestic goods and productivity. This is also the reason why Yellen kept accusing China of overcapacity when she came to China this time. Without huge amounts of goods and productivity, who dares to hold RMB?
There is another extension point. The United States can recover blood by swallowing Japan and India. This is also the possible reason for the crazy rise of Japanese and Indian stock markets in the past year. Pulling up first and then shorting is a conventional method.
At present, unless China takes action, the United States is dead. Without substantial exchange of interests, China will not take action.
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