Do you know why the U.S. is stuck at 4.25%-4.5%???
The U.S. needs to find a point that can ease the current heavy interest burden while not causing capital to leave the country.
If the U.S. lowers interest rates a bit more, for example to the 3% range, some funds will exit because other countries' projects offering returns above 3% will appear more cost-effective.
However, from this perspective, the Federal Reserve should have lowered interest rates a long time ago. Maintaining high rates now doesn't have much significance.
The U.S. dollar index has depreciated by 10% from its peak, and it's not too far off now. The pressure of $9 trillion in short-term debt is also considerable. If Powell were truly neutral and not biased towards the Democrats, he should have lowered rates in July this year. However, Powell's hypocrisy is too pronounced, whether he's shifting blame or simply sabotaging the Trump administration, he has indeed managed to make the Trump administration pay significantly more interest.
The decline of the dollar index and the rebound of U.S. stocks reflect the market's erroneous expectations for the future of the U.S. I don't know what Powell is still waiting for? Does he really want to go down in the future history of the U.S. as a flatterer?
There’s nothing more to say; the debt pressure necessitates a reduction in the U.S. benchmark interest rate. The so-called 80% inflation in the U.S. is due to American policies blocking normal international trade, and has nothing to do with monetary policy. If Powell were an upright and professional person, he should have lowered interest rates just as he should have raised them during the late pandemic period. The facts prove that Powell is just a despicable person. #美联储利率决议