There are two camps on the issue of US interest rate cuts. One group believes that after the rate cut, there will be more currencies that will be conducive to the continued rise of US dollar assets, including cryptocurrencies. The other group believes that the rate cut is the cause of the US economic recession and that the era of US dollar hegemony has ended. They believe that the current market is caused by the Sino-US currency war and that the United States has reached the point where it will face a financial crisis if it does not cut interest rates.

Is the interest rate cut a positive factor or a negative factor? The interest rate cut is not purely a positive factor. After the interest rate cut, the US dollar still maintains its dominant position, so there must be a short-term negative impact and a long-term positive impact. The key is to see whether the capital flow after the interest rate cut affects the market. Where the capital flows, there is a bull market. Similarly, the domestic interest rate has been cut in recent days, but the stock market and the property market have not risen directly. All the money has flowed to the Internet and new energy, so it is important where the capital flows.

Both raising and lowering interest rates are means of market regulation and are beneficial to the market, so there is no need to worry about the short-term negative impact after a rate cut.

Since 2020, interest rate cuts seem to have become the basic operation to lift the sedan chair. It can be seen from the interest rate hike of the yen that the interest rate hike will pose a short-term threat to the yen, but in the long run it is to recover overseas funds. The U.S. stock market has mainly caught up with the double blessing of AI+technology, and has attracted a large amount of funds with high interest rates. At the same time, driven by the war, the U.S. dollar has harvested global capital.

Therefore, the interest rate cut is generally good for the market, and there is no saying that the United States will enter an economic recession after the interest rate cut!
#美联储何时降息？