WHY IS THE FED'S INTEREST RATE DECISION IMPORTANT

-The relationship between interest rate decisions and exchange rates

Interest rate decisions have become the biggest factor determining cryptocurrencies, metal prices and oil prices with the development of technology.

Interest is one of the powerful factors of money. A country makes plans to increase interest rates to protect the strength of its currency value. When its currency is highly valued, its exports decrease and it cannot increase its foreign exchange reserves and cannot make a profit from the exchange rate. The aim here is to maintain balance. If the interest rate is reduced too much and the country's currency is subsequently devalued too much, this time the country's resources, labor force and capital begin to melt. This is followed by social and societal problems, suicides increase, the economy and morality collapse.

It is possible to keep interest rates in balance, examine the data and take steps by feeding on data such as unemployment and employment, inspired by the indicators of the economy, no central bank takes a step on interest without considering this data.

For example, according to our scenario

Scenario 1) If the Fed increases interest rates, Cryptos start to fall or if news signals to increase interest rates, declines occur, especially in gold, while the dollar gains value.

S2 ) If the Fed gives signals to the market to reduce interest rates to provide balance in the economy, that is, if it implements a policy of reducing interest rates, gold, crypto and precious metals will increase, the reason for this is that investors who withdraw their dollars from interest rates turn to precious metals or Cryptos. $BTC $ETH $BNB