If the US not only does not lower interest rates in 2024 but also continues to increase interest rates to 6%, even 10%, something very bad could happen.

First, the US government's debt is already huge, up to 35 trillion USD. If interest rates continue to increase, the interest rate the US government must pay annually on these debts will be very high, making the government's financial situation even more difficult.

Then, for Treasuries (US government bonds), if interest rates continue to rise, investors may find it less effective to buy these bonds as the returns may not be as good as other other investments. As a result, US debt may become less popular and the government may have difficulty raising funds through auctions.

What's worse is that if the US debt market has problems, it will be like a building collapsing and the global financial market will be greatly affected. Because US debt is considered by many to be a safe investment, once something goes wrong with it, other investors could panic and start selling off many of the assets in their hands, causing chaos. on financial markets.

In addition, as one of the world's most important currencies, the position of the US dollar will also be greatly affected. Because people may start to doubt whether the US dollar is still trustworthy, this will lead to a decline in the US dollar's position.#binance #btc #bnb #fed