Let's first explain to you what the Federal Reserve is!

The Federal Reserve is the central bank of the United States, responsible for formulating monetary policy, regulating the banking system, and maintaining financial stability. (Simply understand that all the money in the United States belongs to it!)

What does a rate cut mean?

A rate cut by the Federal Reserve refers to the Federal Reserve's decision to lower the benchmark interest rate. The benchmark interest rate is usually the interest rate for lending between commercial banks. A rate cut will reduce borrowing costs, thereby encouraging individuals and businesses to borrow and consume. This is often used to stimulate economic growth, especially during economic slowdowns or recessions. Rate cuts can also affect the stock market and foreign exchange market, and usually lead to an increase in investor demand for risky assets. (Rate cuts are good for the current economic situation in the long run!)

The Federal Reserve's rate cuts will have many effects, mainly including:

Lower borrowing costs: Lower interest rates for personal and corporate loans, encouraging consumption and investment.

Economic growth stimulus: Lower interest rates may promote spending and investment, thereby promoting economic growth.

Stock market reaction: Rate cuts usually boost the stock market because low interest rates make corporate financing costs lower and investors may turn to stocks for higher returns.

Inflationary pressure: Rate cuts may lead to increased demand, which will drive up prices and increase inflationary pressure.

Currency depreciation: interest rate cuts may lead to a depreciation of the US dollar, affecting international trade and investment.

Decreased savings income: Low interest rates reduce the interest income of savings accounts, which may lead to a decline in depositors' income.

Reduced debt burden: Borrowers can enjoy lower repayment costs, which helps to reduce debt burden.

The most intuitive feeling we can feel is that USDT has fallen, and it has fallen a lot! It will fall again after the interest rate cut, so brothers have to work hard to make money and strive to outperform the decline in the U price!