Why Doesn’t the U.S. Fed Lower Interest Rates?

🔍 Let’s break it down...

💸 What Are Interest Rates?
The Federal Reserve (Fed) sets benchmark interest rates to control inflation and stabilize the economy. These rates directly affect borrowing costs for individuals and businesses.

🚫 Why No Rate Cut (Yet)?
Despite market pressure, the Fed holds rates at 4.25%–4.50% because:
• Inflation is still above the 2% target
• Strong job market = high consumer demand
• Rate cuts too early = risk of overheating

📊 Impact on Markets:
• 📈 Stock Market: Lower rates = more liquidity = bullish sentiment
• 📉 Crypto: Rate cuts boost risk-on assets like Bitcoin & ETH
• 💵 Dollar Index: Weakens when rates drop → strengthens other assets

🧠 TL;DR
The Fed’s caution = markets remain volatile
But any future signal of cuts could ignite a rally across stocks and crypto 🔥

#Fed #FOMO #bitcoin #CryptoNews #AswathRavindran

🟡 Aswath Ravindran