#FedHODL

The US Federal Reserve (Federal Reserve) has a profound impact on global financial markets through its monetary tools, especially its decisions related to interest rates and monetary policy. Its impact can be summarized as follows:

Interest rates and liquidity

When the Fed raises interest rates, the cost of borrowing becomes higher, which leads to reduced spending and investment, and thus reduced liquidity in financial markets, which may lead to a decline in stock and bond prices.

When it lowers interest rates, it pumps money into investment, including digital currency markets, and this news leads to an increase in prices

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