What is the Fed's interest rate hike?

The US interest rate hike means that the Fed raises the federal funds rate or other interest rates. This means that the cost of loans will rise and will have an impact on consumer spending and investment. The US interest rate hike is usually seen as a signal of US policy tightening. The interest rate hike generally means raising deposit rates and loan funds. After the interest rate is raised, funds will flow back to banks, and the cash in circulation will decrease.

How does the Fed implement the interest rate hike?

How does the Fed implement the interest rate hike? Every 6 weeks, the FOMC will hold a meeting in Washington. This meeting is generally called the interest rate meeting. Generally, it is held on Tuesday and Wednesday for two days. There are 8 times a year.

If the Fed raises interest rates, the pressure on the depreciation of the RMB will increase. The Fed's interest rate hike will increase the deposit interest of US depositors. Therefore, international investors will be more willing to hold US dollars, and international hot money will gradually flow into the United States. The US dollar is strong and appreciates relative to other currencies, so other currencies are relatively depreciating relative to the US dollar.

This wave of interest rate hikes in the United States began in March 2022. At this stage, the Fed is hanging on and delaying interest rate cuts! ! ! #美联储何时降息？