What does the Fed rate hike mean? It means a lot of things

Issuing time:2020-01-06 00:00

As the US central bank, the Federal Reserve also plays a large role in the financial sector in the United States. He maintains the development of the US economy. We know that the unemployment rate in the United States is relatively high, and the inflation rate in various markets is also high. It is also constantly increasing. These reasons are inseparable from the Fed. The Fed recently initiated a rate hike. The interest rate hike has also seen various funds and other things on the US market increase interest rates. For Other countries are bad news.

What does it mean when the Fed raises interest rates? If we want to know what the Fed ’s rate hikes mean, we must first understand the purpose of the Fed ’s rate hikes. After the Fed ’s rate hikes, first the interest rates of loans between banks It ’s increased. This is a bad thing for all banks in the United States. The cost of borrowing money between banks needs to be increased. Increasing the borrowing rate of American banks will increase the borrowing rate in the US market. This will cause changes in the entire social market.

Therefore, the Fed ’s interest rate increase is more popular in order to increase the mutual interest rate of finance and increase the value of the U.S. currency. In this way, the value of the US dollar has also been increased. This kind of interest rate hike also means these, and it also means that the currency price in the market will rise, and many problems will arise. This is also a cause of inflation. Inflation is also the meaning of the Fed's interest rate hike. It is to increase the currency of one's own country, increase the exchange rate between countries and other countries, and so on.

The impact of the Federal Reserve ’s interest rate hike on the world is relatively large. We know that there are many financial businesses involved in banks, such as the large market of stocks. The Federal Reserve ’s interest rate hike will definitely cause changes in stocks. With the increase of interest rates, investment returns will also appear. The rate will be high, so the US dollar will return to its own country very quickly, and earn some money by buying and selling stocks in other countries. This is also the impact of the Fed's interest rate hike.


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