Understand the Principles and Processes of US Interest Rate Hikes and Cuts in One Article (Recommended for Collection)
Why discuss interest rate hikes and cuts? Because they directly affect the cryptocurrency market, US stocks, and even the overall global liquidity, determining the trajectory of financial cycles. It is no exaggeration to say that interest rate hikes often lead to bear markets and tightened funds; interest rate cuts often welcome bull markets and loosened funds, which is not to be underestimated.
Looking back at nearly 40 years of historical data, I have drawn conclusions about interest rate hikes and cuts:
1/Fed's continuous interest rate hike cycle: CPI exceeds 3%, unemployment rate below 5.6%, with a priority on controlling inflation; during this phase, the economy is strong, and even with continuous interest rate hikes, the unemployment rate will continue to decline in the robust economic recovery.