👉Why the global financial markets are all waiting for the Fed to lower interest rates.

1. The US dollar 💸is the global reserve currency

A lot of trade transactions, international borrowing, bonds, and foreign exchange reserves are tied to the USD.

When the Fed lowers interest rates → the cost of borrowing in USD decreases → the debt burden of many countries/financial institutions decreases.

2. Global capital flows are strongly influenced by US interest rates

High interest rates → capital flows to the US to take advantage of bond yields.

When the Fed lowers interest rates → capital tends to flow to emerging markets, securities, crypto… → stimulating growth in many economies...