The United States wants to harvest the Dragon Kingdom by raising interest rates.
This time, the United States has obviously failed in its game,
shooting itself in the foot.
The U.S. economy is in recession and in a power vacuum. It is attacked by its own little brother Xiao Ri’s interest rate hike. The U.S. stock market and the U.S. dollar will be hit hard.
If the interest rate is cut quickly to save the market, the economy will enter a long-term stagflation. If the interest rate is cut slowly, the U.S. dollar will fall into a liquidity crisis and a dollar shortage will occur. The Fed will have a hard time making any choice now.