$The Fed has cut 25 bps into 4.75%!â
Bullishđ„
Why? Read on.
The Federal Reserve's decision to cut interest rates from 5% to 4.75% is expected to have a range of impacts on the economy: Â
đ„Positive Impacts:
Stimulates economic growth: Lower interest rates make borrowing cheaper for businesses and consumers, encouraging spending and investment. This can boost economic activity and job creation. Â
Boosts the people desire to join stock market or crypto market: Lower interest rates often lead to higher possibility to seek more options to earn money as investors seek out higher returns in a low-interest-rate environment. Â
Reduces debt burden: Lower interest rates reduce the cost of servicing debt for businesses and consumers, freeing up more money for spending and investment.
Strengthens housing market: Lower interest rates make mortgages more affordable, stimulating home buying and construction activity. Â
Weakens the dollar: Lower interest rates can weaken the dollar relative to other currencies, making imports more expensive and potentially fueling inflation. People might buy and keep a better asset just like $BTC or $PAXG (gold)
Overall, the impact of the Fed's rate cut will depend on a variety of factors, including the state of the economy, inflation expectations, and global economic conditions. But most of the time, more cuts means more money đ”will out into circulations.
