The US dollar rate cut may be a scam❗Things are more serious than you think🤨
Since the Fed Chairman Powell said that the rate cut expectation is 100%, almost everyone will think that the US dollar will depreciate rapidly, thereby pulling the market's fueling sentiment to the secondary market. The direction is reasonable, but let's talk about the unreasonable points:
If the US dollar is now fully transmitted to the public to cut interest rates, the United States is no different from a chronic recession, because interest rate cuts are always linked reactions. Once the interest rate is cut, everyone will expect continuous interest rate cuts because they want to boost the economy. After the interest rate cut, the US dollar yield will become lower and funds will flow out, but the Federal Reserve has never been a charity. Its method in recent years has been to raise the US dollar and hit other countries' assets. The model is to buy other countries' assets at low prices when the US dollar is high.
At this time, the following points will be completed:
1. When the price is high, the US dollar flows into the United States🇺🇸 and buys US bonds💸
2. When the US really cuts interest rates, the United States🇺🇸 buys foreign debt and holds high-quality low-priced assets at the same time.
Where the money flows, the assets will rise📈Now we know that the Japanese yen has raised interest rates😃Hmm...where will the world finance go in the end...it makes me think🤔