The Fed's acting is terrible. They keep saying that the rate cut will not be too fast. In fact, it is just using inflation as a cover!
According to the latest news, the probability of the Fed keeping the interest rate unchanged in June is 99.1%, and several officials have made hawkish remarks: the possibility of raising interest rates again is not ruled out. This is really: the more you want to cover up the truth, the easier it is to reveal your true colors.
The whole world can't figure out whether the Fed is going to raise or lower interest rates. Children's faces don't change as fast as the Fed. In fact, the more we should see clearly at this time. The Fed's poor acting can't cover up the truth that the US high blood pressure is about to explode.
The pros and cons of the interest rate cut decision are like a double-edged sword. On the one hand, it may bring a short-term economic recovery, and on the other hand, it may cause greater damage in the future economic cycle.
Any economic decision is like a coin, with pros and cons. If the interest rate is cut, the US economy may indeed get some breathing space in the short term. After all, lowering loan interest rates is undoubtedly a spiritual chicken soup for those struggling companies.
In the long run, the successive interest rate cuts may not necessarily cure the root cause of the US economy, but may bury deeper hidden dangers. For example, too low interest rates may induce new asset bubbles and lay a greater hidden danger to future economic stability.
Why does the world care so much about interest rate cuts? Think about the past three years. Everyone knows what the Chinese stock market and real estate market have been like. A key reason here is that the United States has started to raise interest rates, sucking all the money back to the United States.
Not only the capital market, the US interest rate hike also affects their own domestic consumer market. The United States is the world's largest consumer country, which has a great impact on our exports.
Once the United States raises interest rates, the whole world has to live a tight life. If the United States cuts interest rates, it is equivalent to the world releasing water, and the good days are back. That's why the world is so concerned about interest rate cuts, and the same is true for crypto assets.
Any decision has risks and opportunities. The important thing is whether you are ready for it and to meet all these possible changes.
