🔥🔥The mystery of the United States' refusal to cut interest rates: analysis of six deep-seated reasons
1. Political situation: the delicate balance before the election
As the US presidential election approaches, the competition between the Biden administration and Trump is becoming increasingly fierce. In this sensitive period, the political risks that may be brought about by the interest rate cut cannot be ignored.
2. Inflation pressure: the persistence of the value of the US dollar
With severe inflation, the Biden administration not only has to face the pressure of the election, but also needs to maintain the high value of the US dollar. The interest rate cut is undoubtedly a major challenge to this.
3. International strategy: a bigger goal is ahead
The United States is no longer satisfied with just harvesting small countries such as Argentina, but has set its sights on bigger goals-China and Russia. The war has brought unprecedented opportunities to the United States.
4. Economic strategy: turning from Europe to China
Faced with the reality that Europe is difficult to give up, the US economic strategy has to turn to China. Even if domestic banks go bankrupt and debts accumulate like mountains, the path of interest rate cuts is still firmly rejected by the United States.
5. Foreign debt pressure: a huge challenge of 35 trillion
Once interest rates are cut, global funds may flow out of the United States, and the global status of the US dollar will face huge challenges. Under the shadow of this 35 trillion foreign debt, the US's path to lowering interest rates is even more difficult.
VI. China-US game: undercurrents under easing
Although Sino-US relations have eased, the US's suppression and restrictions on China have not been relaxed. China's huge influence and dominance in Southeast Asia are still a challenge that the United States cannot ignore. Every step of the United States is difficult to maintain, and whether other countries will de-dollarize will become the key to the future of the United States.