Daily Archives: September 16, 2024

If the Federal Reserve cuts rates by 50 basis points (bps), it signals a significant shift in monetary policy aimed at stimulating the economy or addressing economic concerns. Here’s what typically happens: Weaker US Dollar: A 50bps rate cut reduces the interest rate on US-denominated assets, making them less attractive to global investors. This often…

Federal Reserve (Fed) rate cuts profoundly impact the US dollar, which in turn influences global markets and investor behavior. When the Fed lowers interest rates, it typically leads to a depreciation of the dollar. This is because lower interest rates reduce the return on investments in US assets, making the US dollar less attractive to foreign investors. As…